The Chairman, Presidential Committee on Fiscal Policy and Tax Reforms. Public & Social Services, Mr. Taiwo Oyedele has reiterated his stance on the government’s proposed Tax Reform Bills, saying the bills are designed to bring about significant benefits to households, individuals, small businesses, and governments at all levels.

According to Oyedele on his X page, the bills aim to promote a fairer and more efficient tax system.

“For households and individuals, the bills propose a complete exemption from PAYE for low-income earners up to N1 million per annum, reduced PAYE tax for those earning a monthly salary of N1.7 million or less, and zero VAT on essential items like food, healthcare, and education.

READ ALSO:

Senate moves to approve vocational/technical institute in Benue

Emirship tussle: No going back on installation of Bichi District Head — Sanusi

Emir Sanusi vows to proceed with installation of Bichi District Head despite obstacles

“Small businesses will also benefit from the proposed tax exemption threshold increase from N25 million to N50 million, exemption from company income tax, and simplified tax compliance procedures.

“The bills also introduce measures to attract investments, promote economic growth, and encourage business formalization.

These include a reduced corporate income tax rate from 30% to 25%, unilateral tax credits for income earned abroad, and economic development incentives for priority sectors.

“High-income earners and high net worth individuals (HNIs) will also benefit from tax exemptions on personal effects, sale of dwelling houses, and private vehicles, as well as progressive personal income tax rates.

“Furthermore, the bills propose a more equitable distribution of VAT revenue, with 5% of VAT revenue to be ceded to states. States will also be entitled to tax Limited Liability Partnerships, and a framework will be established to grant autonomy to states’ internal revenue services.

Overall, the Tax Reform Bills aim to create a fairer, more efficient, and more business-friendly tax system that benefits all stakeholders. As Mr. Oyedele noted, “There is something in the tax bills for everyone.”