Tax reform will enhance growth, eliminate regulatory challenges
Tax
Tax reform will enhance growth, eliminate regulatory challenges
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) says the tax reform bill will eliminate regulatory bottlenecks and boost micro small and medium enterprises’ (MSMEs) growth.
Charles Odii, SMEDAN’s director-general (DG), spoke on Friday during a stakeholder engagement on tax reforms organised by the agency in Abuja.
The event, themed “Understanding the Tax Reform Bills: Benefits and How MSMEs Can Maximise Tax,” brought together key industry stakeholders, offering business owners an opportunity to seek clarification and gain insights into the provisions of the tax reform bill.
Odii said that once passed into law, the bill would remove multiple taxation and exempt businesses with annual earnings below N100 million from key tax obligations.
“We have 39,654,385 nano, micro small and medium enterprises (MSMEs) in Nigeria, and the first step towards ensuring their success is sensitisation,” he said.
“Many small business owners are unaware that if this tax reform bill is passed, they will no longer be required to pay VAT, CIT, PAYE, and several other taxes.”
The DG further said the reform aims to encourage business formalisation and expansion by removing excessive taxation fears.
He also commended the House of Representatives for passing the bill and urged the senate to follow suit.
“When small businesses flourish, the entire economy benefits. This reform will remove unnecessary regulatory bottlenecks, allowing MSMEs to thrive,” Odii said.
Abdulrashid Yerima, president of the Nigeria Association of Small and Medium Enterprises (NASME), also lauded the proposed reforms, emphasising that they address key challenges faced by small businesses, particularly multiple taxation and arbitrary levies by regulatory agencies.
“Our members have long struggled with excessive taxation at different levels; import duties, levies on turnover, and arbitrary charges from state and local government,” Yerima said.
“The chairman of the tax reform committee has clarified that many of these burdens will be eliminated once the bill becomes law.”
Yerima further stressed the need for proper implementation to prevent unauthorised tax collectors and non-state actors from imposing levies on small businesses.
