The ongoing tax reform process being embarked upon by the federal government is set to prioritise local manufacturers, small and medium-scale enterprises (SMEs), and the most vulnerable in the society.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, stated this at the Fiscal and Monetary Reforms Session of the recently concluded 30th Nigerian Economic Summit in Abuja.
Speaking on the new gazetted withholding tax (WHT), Oyedele said the policies will enable manufacturers and small business operators to grow the economy, thereby increasing tax revenues for the government.
“When we allow industries and manufacturers to grow and thrive, the economy grows, and when this happens, we have more economic activity, which will naturally translate into increased tax revenues.
“We prioritised manufacturers and SMEs in our reforms. Now, there are no taxes on manufacturers anymore.
“When we withhold your income, and you’re borrowing at 35 percent, it means you’re funding the government at 35 percent. How do you grow? We’ve done the same for VAT, this allows their costs to go down.”
