The Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, has revealed that the panel has proposed tax relief for companies making losses and those with low margins.
Oyedele disclosed this on Monday via his X handle as he answered questions about the tax reform bills. Some of the companies listed on the Nigerian Exchange Limited have been reporting losses due to the devaluation of the naira, which has impacted their foreign exchange exposure.
Some of the proposals include a reduction of the corporate income tax rate from 30 per cent to 25 per cent over the next two years and the elimination of earmarked taxes on companies to be replaced with a harmonised single levy at a reduced rate.
“Others include elimination of minimum tax on loss-making companies and those with low margins, grant of input Value Added Tax credit to businesses on assets and services to reduce cost of investment, ability to pay taxes on foreign currency transactions in naira, WHT and VAT exemptions for small businesses and a higher threshold of N50m annual turnover for corporate income tax exemption.”
