Abuja: The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has announced that the proposed tax reform bill will significantly reduce the financial burden on small business owners, fostering an environment conducive to growth.
According to News Agency of Nigeria, SMEDAN’s Director-General, Mr. Charles Odii, made this statement during a stakeholder engagement on tax reforms organized by the agency in Abuja. The event, themed ‘Understanding the Tax Reform Bills: Benefits and How MSMEs can Maximise Tax’, highlighted the potential advantages of the reform for small businesses. Odii noted that the bill, once enacted, would eliminate multiple taxations and exempt businesses earning below N100 million annually from key taxes.
Odii emphasized the importance of sensitization for the 39,654,385 nano, micro, small, and medium enterprises (MSMEs) in Nigeria. He pointed out that many business owners are unaware of the potential tax reliefs, including exemptions from VAT, CIT, PAYE, and other taxes, that the reform could offer. The reform aims to encourage business formalization and expansion without the fear of excessive taxation.
Commending the House of Representatives for passing the bill, Odii urged the Senate to do the same. He highlighted the broader economic benefits of flourishing small businesses and the removal of regulatory bottlenecks that would allow MSMEs to thrive.
Dr. Abdulrashid Yerima, President of the Nigeria Association of Small and Medium Enterprises (NASME), also praised the proposed reforms. He noted that the bill addresses significant challenges faced by MSMEs, particularly multiple taxation and arbitrary levies by regulatory agencies. Yerima stressed the importance of proper implementation to prevent non-state actors and unauthorized tax collectors from imposing levies on small businesses.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, highlighted the necessity of overhauling the tax system to foster economic growth and ease the tax burden on small businesses. Oyedele reiterated the challenges faced by small business owners, such as multiple taxation and exploitation by revenue officers, and proposed reforms like eliminating VAT and withholding tax for businesses with annual turnovers below N100 million.
Mrs. Linda Omubo-Pepple, SMEDAN’s Director of Partnership and Coordination, emphasized the importance of collaboration between policymakers and business stakeholders in shaping Nigeria’s tax policies. She noted that tax reforms play a critical role in driving economic growth while ensuring the sustainability of MSMEs.
The meeting, attended by key MSME stakeholders and representatives of the Federal Government, provided a platform for business owners to seek clarity on the reform bill’s provisions and engage in dialogue on its implications.