The presidency on Sunday, highlighted fresh benefits of the tax reform bills proposed by President Bola Tinubu.
The presidency, in a post by the Special Adviser to President Tinubu on Public Communication and Orientation, Sunday Dare, said the bill needs to be studied before drawing conclusions on it.
Specifically, the statement called out Senator Ali Ndume, who had during a recent interview, said the bill is dead on arrival and there is no need to study the document.
Among other things, the presidential aide noted that the bill will empower youths in the global business environment by facilitating remote work opportunities, introduce zero percent VAT on food, education, health, and exemption for rent and public transportation, repeal over 50 nuisance taxes and levies, and harmonize the remaining taxes to a single digit.
According to Dare, “For the benefit of Senator Ndume and others who might be of the mind that they do not need to study a document before speaking to it, here are some of the changes proposed in the bills:
1. Changes to the income tax laws to facilitate remote work opportunities for Nigerians in Nigeria within the global business process outsourcing. This will empower our youths to play a key role in the digital economy space.
2. Zero-rated VAT and other incentives to promote exports in goods, services, and intellectual property.
3. Tax exemptions for small businesses including WHT, VAT, and 0% CIT.
4. Exemption from personal income tax for minimum wage earners and reduced tax burden for over 90% of private and public sector workers
5. VAT at 0% for food, education, health, and exemption for rent and public transportation. These items constitute an average of 82% of household consumption and nearly 100% for low-income households to ameliorate the rising cost of living for the masses.
6. Introduction of the Tax Ombudsman to advocate for improved tax system and protect vulnerable taxpayers
7. Reduction of corporate income tax rate from 30% to 25% over the next 2 years and elimination of earmarked taxes on companies to be replaced with a harmonized single levy at a reduced rate.
8. Elimination of minimum tax on loss-making companies and those with low margins
9. Grant of input VAT credit to businesses on assets and services to reduce cost of investment and improve competitiveness
10. Redesign of the personal income tax band and rates, VAT and Capital Gains Tax to be progressive while protecting the poor
11. Changes to permit the payment of taxes on foreign currency denominated transactions in naira to reduce the pressure on the exchange rate and simplify compliance for businesses.
12. Proposal to repeal over 50 nuisance taxes and levies, and harmonise the remaining taxes to a single digit
13. Equitable basis for VAT revenue sharing to ensure that states without many headquarter companies are fairly treated and recognized for their economic contributions
14. Rationalisation of tax incentives to reduce uncertainty and provide a level playing field for all investors
15. A new National Fiscal Policy to set the framework for fair taxation, responsible borrowing and sustainable spending.
