The Federal Government has reaffirmed its commitment to supporting micro, small, and medium enterprises through tax incentives aimed at fostering growth and sustainability in the sector.
This was disclosed recently by the Executive Chairman of the Federal Inland Revenue Service, Executive Chairman, Zacch Adedeji, who was represented by his special adviser, Collins Omokaro, at the inaugural MSME Finance Awards convened by The Economic Forum Series in partnership with Nairametrics and DigiComm Enterprise.
He explained that the federal government was focused on creating an environment that enabled MSMEs by providing tax relief and exemptions.
“The Federal Government, through FIRS, has introduced reforms to reduce the financial burden on MSMEs. Small businesses, as classified under the Company Income Tax Act, are exempt from companies income tax and are also exempt from the obligation to collect value-added tax,” the FIRS boss said.
He noted that the government’s tax policies were designed to support MSMEs by reducing the complexity of tax compliance, encouraging greater participation in the formal economy, and ensuring that more businesses benefit from tax incentives.
