NASS Set to Receive Report from Tinubu's Tax Reforms Committee in September

By Mohammed Bello Doka

The Presidential Fiscal Policy and Tax Reforms Committee, under the leadership of Taiwo Oyedele, has announced its plans to present its policy recommendations to the National Assembly by the end of the third quarter of 2024. Among the proposed reforms are new National Tax and Borrowing Policies scheduled for implementation in September, along with constitutional amendments to be effective from 2025.

Having concluded the proposal phase, the committee is currently engaging with the private sector for feedback throughout May. Taiwo Oyedele revealed that internal approvals from governmental bodies such as the Federal Executive Council and the National Economic Council are expected by the end of June.

Anticipating the enactment of these reforms into law by the end of Q3, Oyedele emphasized the importance of providing sufficient notice to the public, businesses, and individuals before their implementation in 2025. He highlighted specific reforms, such as a new withholding tax regulation exempting small businesses, awaiting final signatures.

The proposed reforms also include a new National Tax Policy, a Spending Policy to regulate government expenditure, and a Borrowing Policy aimed at fulfilling the social contract with the populace. Oyedele stressed the necessity of ensuring the endurance and sustainability of these reforms to prevent their reversal in the future.

Addressing concerns about tax thresholds for small businesses, Oyedele stated that businesses earning less than N25 million annually would be exempt from company income tax and VAT. He advocated for supporting the growth of the informal sector by legally exempting 95% of it from various taxes, allowing focus on the remaining 5% and other income brackets.

Asserting the need for leaders to lead by example in tax compliance, Oyedele emphasized the committee's conviction to increase exemption thresholds for low-income earners, acknowledging the challenges posed by multiple taxations and assuring gradual resolution as reforms progress from proposal to implementation.