The federal government has announced an increase in the tax exemption threshold for Small and Medium enterprises (SMEs) from ₦25 million to ₦50 million in annual turnover, highlighting the significant benefits of the Tax reform bills for small businesses.
According to a statement signed by the management of the Small and Medium Enterprises Agency of Nigeria (SMEDAN), Director General Charles Odii will embark on a sensitization tour to engage Small Business Owners nationwide on the implications and opportunities of the proposed Tax Reform Bills.
This exercise builds on earlier efforts that contributed to the drafting and submission of the Bills. The objective is to provide clarity, dispel misconceptions, and foster a better understanding among key stakeholders, including local administrators.
The engagement will kick off with a breakfast meeting in Lagos, featuring representatives from Business Membership Organizations (BMOs) and other associations. Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, will lead a key session during the meeting.
“We want SMEs to fully understand the implications of these Bills and be adequately represented in the ongoing legislative process. Our priority is for SMEs to reap its full benefits, which will ultimately boost the economy, given that they are the engine of growth.
“Proposals such as the consolidation of taxes, elimination of nuisance levies, expansion of exemptions, and zero VAT on exports and essential goods reflect the true wishes of SMEs as identified during previous engagements and surveys,” Odii emphasized.
Odii further stressed the importance of understanding enforcement mechanisms, adding that SMEs need to understand what enforcement would look like if the Bills are passed, to ensure they are not denied the benefits intended for them.
With over 90% of businesses in the country and more than 80% of employment dependent on SMEs, it is crucial to eliminate arbitrary taxes that increase operational costs, as proposed by the Bills, to ensure SMEs can hold relevant authorities accountable for proper implementation.
The DG said the engagement sessions would help dispel misinformation and fear-mongering surrounding the Bills, ensuring productive and informed discussions. He commended the Presidential Fiscal Policy and Tax Reforms Committee for its commitment to dialogue and prioritizing SMEs, which drive growth and prosperity.
