By Nana Musa
Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Mr Taiwo Oyedele, has said that the new tax reform is to strengthen macroeconomic stability.
Oyedele stated this in Abuja.
He said that the government’s proposed reforms would strengthen macroeconomic stability, enhance revenue mobilisation and improve the tax-to-Gross Domestic Product (GDP) ratio, enhance credit ratings and lower debt costs.
He added that “by increasing its credit rating and reducing the cost of debt, government aims to achieve a healthier fiscal balance, thereby ensuring sustainable economic growth for the nation.
“The reforms will address distortions in the incentives regime, improve free trade zones and promote equity and fairness between government and taxpayers.”
Oyedele also said that the reforms were essential for the country’s economic development.
According to him, the proposed tax reforms will provide significant economic relief for households through measures like wage awards, transport subsidies, tax waivers on food imports, tax suspensions on fuel products and reduced tax burdens.
He noted that the reforms aim to exempt low-income earners, lower tax rates for the middle class and introduce Value Added Tax (VAT), zero-rating and exemptions for essential items.
The chairman explained that for businesses, the proposed tax reforms would mitigate risks, lower tax rates and offer tax refunds.
“These reforms will reduce business risks by eliminating minimum tax requirements, allowing for interest deductions, streamlining tax rulings and addressing the statute of limitations.
“The reforms aim to enhance company’s ability to deduct interest expenses, benefit from input VAT credits and receive tax relief along with economic development incentives.
“They will also lower tax burdens, reduce tax rates, introduce a more competitive tax regime, input VAT credits, tax reliefs, facilitate tax payments in Naira and ensure tax refunds.
“Also, it aims to reduce VAT rates for the general populace and introduce zero rates on essential goods and services,” Oyedele said.
For the small businesses, Oyedele said, the proposed tax reform bills intend to raise the tax exemption threshold from N25 million to N50 million in annual turnover.
According to him, the initiative is designed to alleviate the tax burden on small enterprises, enabling them to grow and contribute sustainably to the economy.
The committee chairman said that the proposed tax reforms would touch on all important areas that deserved attention.
