Proposed tax laws’ll enhance inclusiveness, boost economy –Presidency

By Merit Ibe          

The presidency has appealed for support for the tax reform bill before the National Assembly, highlighting that the initiative will advance the nation’s goals of inclusive governance, economic prosperity, and the growth of Small and Medium Enterprises (SMEs).

Special Adviser to the president on Communications and Advocacy, Mr. Collins Osagie Omokaro, who made the plea recently, also disclosed that the new tax reform bill was meant to revolutionize the taxation regime in the country.

He therefore called for collaboration of stakeholders in different sectors of the economy – public and private – to ensure its success and the reality of the government’s promise of a fair and efficient tax system as contained in the new reform bill.

Significantly, the presidential aide focused on how SMEs would benefit from the new tax reform bill as an imperative to enabling them to contribute a lot more to the country’s socio-economic growth.

“One of the most significant aspects of the reform is the elimination of nuisance taxes, which are low-yield levies that disproportionately affect SMEs. These taxes, despite their minimal contribution to government revenue, impose high compliance costs on businesses.

“The elimination of nuisance taxes, such as levies and permit fees, and the exemption from Value Added Tax (VAT) for over 97 per cent of SMEs, significantly reduce the financial burdens on small businesses.”

Omokaro also added that “input VAT credits on assets and services further lower production costs, enabling SMEs to channel saved funds into core operations and expansion.

“With these reforms, Nigeria stands at the threshold of a more inclusive and prosperous economy, where SMEs are empowered to thrive and contribute meaningfully to national development.

“In conclusion, the new tax reform bill is a monumental step forward in addressing the systematic challenges that have historically hindered SMEs in Nigeria.”

Consequently, he urged SMEs to take maximum advantage of the tax reform when it becomes a law, just as he stressed the imperative of government’s sustained commitment to it.

According to him, as the reforms are implemented, it is crucial for the government to maintain transparency, consistency, and a commitment to sustained improvement. SMEs must also take advantage of the opportunities provided by the new tax regime to scale their operations and formalize their activities.”

Insisting that the benefits of the new tax reform are impliedly for all and sundry, the presidential aide concluded that the cumulative impact of these benefits is transformative, promoting SMEs as engines of economic growth and innovation.

“With reduced burdens and greater support, SMEs can now focus on scaling their operations, creating jobs, and driving Nigeria’s development agenda.”