By Charles Okonji
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has assured Nigerians that the ongoing tax reforms were designed to unlock new opportunities for businesses, eliminate dip-seated rigidities militating against businesses and the overall national economy.
Oyedele stated this on Friday at a one-day workshop organised by the Federal Inland Revenue Service (FIRS), soon to transition into the Nigerian Revenue Service (NRS) for journalists in Lagos.
Explaining the broad benefits of the reforms, Oyedele said the new tax framework prioritises workers’ welfare by reducing the overall tax burden, eliminating multiple taxation and ensuring that low- and middle-income earners retain more of their disposable income.
The tax expert noted that this new tax reform has expanded exemptions on essential goods and services, such as food, healthcare, and education, which will shield vulnerable households and drive consumption-led growth.
He emphasized that Small and Medium Enterprises (SMEs) stands to gain significantly from the reform package, as the streamlined tax structure and simplified compliance processes will lower operational costs and encourage more informal businesses to formalise.
According to him; “Minimum wage earners are exempted from fromnpersonal income tax, amall businesses enjoy broader exemptions and Value Added Tax (VAT) no longer applies to essentials such as basic food, education, healthcare, shared road transport and rent.”
He said that improved access to finance, energised capital flows and the removal of bureaucratic bottlenecks would create a more supportive environment for SMEs to scale and contribute meaningfully to employment generation and national growth.
He pointed out that the reforms were aimed at correcting longstanding economic distortions that placed disproportionate pressure on smaller businesses and lower-income groups.
“Small businesses are the backbone of our economy, yet many remain outside the tax net. The reforms encourage them to formalise by granting them a zero percent corporate income tax rate for qualifying small firms, exempting them from VAT and Withholding Tax (WHT) obligations and ensuring Pay As You Earn (PAYE) tax exemptions for their typically low-income employees.
“The government aims to ensuring a fairer distribution of tax responsibilities while promoting economic inclusion. The government is determined to combat tax evasion and avoidance by deploying stronger compliance frameworks, enhanced digital systems and more transparent administrative processes.” He averred.
The tax committee Chairman noted that the transition to a harmonised tax system with fewer, clearer, and better-defined taxes as a major step toward building trust between taxpayers and authorities and improving overall governance.
He maintained that an enhanced tax administration and the establishment of a unified revenue service would help reduce duplication, minimise compliance costs for businesses and improve revenue collection without imposing new burdens on the populace.
“The new reforms would strengthen the broader economy by creating a more predictable fiscal environment, attracting investment, driving business expansion and enabling government to mobilise resources more efficiently for national development.” Oyedele explained.
