The Presidency has provided a detailed explanation of the tax reform bills it presented to the National Assembly, listing the benefits of the bills to Nigerians.
The call by the National Economic Council for the bills to be withdrawn from the National Assembly has led to serious debate among Nigerians.
While President Bola Tinubu acknowledged the NEC’s advice, he has insisted that the National Assembly should complete the process of assessing the bills, after which they will be scrutinised by the public.
In a statement issued on Thursday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the advantages of the bills are itemized.
The statement titled ‘KNOW THE TRUTH ABOUT THE TAX REFORMS BILLS’ is reproduced below…
KNOW THE TRUTH ABOUT THE TAX REFORMS BILLS
Changes to the income tax laws to facilitate remote work opportunities for Nigerians in Nigeria within the global business process outsourcing.
This will empower our youths to play a key role in the digital economy space.
1. Zero rated VAT and other incentives to promote exports in goods, services, and intellectual property.
2. Tax exemptions for small businesses including WHT, VAT, and 0% CIT.
3. Exemption from personal income tax for minimum wage earners and reduced tax burden for over 90% of private and public sector workers.
4. VAT at 0% for food, education, health, and exemption for rent and public transportation. These items constitute an average of 82% of household consumption and nearly 100% for low income households to ameliorate the rising cost of living for the masses.
5. Introduction of the Tax Ombudsman to advocate for improved tax system and protect vulnerable taxpayers.
6. Reduction of corporate income tax rate from 30% to 25% over the next 2 years and elimination of earmarked taxes on companies to be replaced with a harmonised single levy at a reduced rate.
7. Elimination of minimum tax on loss-making companies and those with low margins.
8. Grant of input VAT credit to businesses on assets and services to reduce cost of investment and improve competitiveness.
9. Redesign of the personal income tax band and rates, VAT and Capital Gains Tax to be progressive while protecting the poor.
10. Proposal to repeal over 50 nuisance taxes and levies, and harmonise the remaining taxes to a single digit.
11. Rationalisation of tax incentives to reduce uncertainty and provide aEquitable basis for VAT revenue sharing to ensure that states without many headquarter companies are fairly treated and recognised for their economic contributions level playing field for all investors.
12. A new National Fiscal Policy to set the framework for fair taxation, responsible borrowing and sustainable spending
13. A new National fiscal policy to set the framework for fair taxation, responsible borrowing, and sustainable spending.
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