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From Isaac Anumihe, Abuja
Chartered Institute of Taxation (CITN) has thrown its weight behind the new tax regime, saying that it affords 20 per cent annual rent paid capped at N500.000.
Speaking at the tax awareness campaign in Abuja, President of CITN, Innocent Ohagwa, added that essential goods and services such as food, education, healthcare, electricity transmission and non-oil exports have been granted zero-rated value added tax (VAT) treatment, reducing household burdens and supporting economic activity.
Besides, compensation for loss of employment or personal injury now enjoys higher exemption thresholds, alluring stronger financial protection. For businesses, especially small enterprises, he said, the reforms are transformative.
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According to him, companies with annual turnover not exceeding N100 million and fixed assets not exceeding N250 million are exempt from Companies Income Tax (CIT) Capital Gains Tax (CGT), and the development levy. This means, thousands of small businesses can now reinvest in growth, job creation, and innovation. However, for key sectors, targeted incentives have been introduced. He said that agriculture aquaculture, dairy production, cocoa processing, and animal feed manufacturing now enjoy tax incentives to boost food security and encourage investment.
While these reforms provide significant opportunities, taxpayers must also understand that enjoying these benefits comes with responsibilities”Ohagwa noted, regretting that a lot of misconceptions have trailed the introduction of the new tax regime.
He said: “Over the past year, we have observed numerous misconceptions surrounding the reforms. Some people believe the reforms introduced entirely new taxes on every aspect of economic activity. Others have assumed that the reforms were designed solely to increase government revenue without considering the welfare of taxpayers.
Some business owners have expressed concerns about compliance obligations without fully understanding the reliefs and protections available to them. Other sources, leading to confusion and unnecessary anxiety have received conflicting information from social media” he said.
