The Federal Government is actively devising a strategy to offer tax relief to a whopping 95 percent of businesses operating within the informal sector of the economy. Mr. Taiwo Oyedele, the chairperson of the Presidential Fiscal Policy and Tax Reforms Committee, made this revelation during the committee’s closing session held on Sunday in Abuja.

The crux of this initiative revolves around exempting businesses with an annual income of N25 million or less from various tax obligations that have historically hampered their growth trajectory.

“We believe that legally exempting 95 percent of the informal sector from all tax burdens—ranging from withholding tax to company income tax and even payee on staff—will provide a significant boost to these enterprises,” stated Oyedele, underlining the committee’s data-driven decision-making process. “Our goal is to support and nurture these businesses as they strive to establish themselves and eventually contribute to the tax pool.”

Furthermore, Oyedele shed light on forthcoming reforms targeting the top five percent of the informal sector, the middle class, and the elite in terms of taxation. He emphasized the committee’s ongoing efforts to draft legislation that will facilitate necessary changes within the fiscal policy and tax reform framework of the nation.

In terms of compliance, Oyedele urged all stakeholders to collaborate wholeheartedly with the government in implementing a fresh fiscal and tax policy, one designed for the collective benefit of citizens. He stressed the importance of adherence to tax laws, calling for leadership by example from elected and appointed officials alike.

Addressing public grievances regarding certain taxes entrenched in the constitution, Oyedele affirmed that the committee had scrutinized these concerns and advocated for their review. He assured that the committee’s report would undergo standard legislative procedures to grant it full legal backing.

“As we transition from conceptualization to implementation, we anticipate a reduction in such issues, fostering harmony within the fiscal system,” Oyedele remarked optimistically. “This not only pertains to the volume of taxes collected but also to the enhanced efficiency and prioritization of expenditure, focusing on initiatives that uplift the majority grappling with multidimensional poverty.”

Oyedele also disclosed the committee’s collaboration with sub-national and local government bodies to streamline taxes into a unified framework. He expressed confidence in the feasibility of repealing numerous taxes, harmonizing the remainder to single-digit levels across all tiers of governance, and enhancing tax collection efficiency.

“We firmly advocate for raising the exemption threshold for small businesses and low-income earners,” Oyedele added. “For those struggling to make ends meet, the last thing they need is the burden of taxation.”

Meanwhile, at the ceremony, Vice President Kashim Shettima reiterated President Bola Tinubu’s commitment to revitalizing revenue generation in the country. He emphasized the government’s objective of fostering an investment-friendly business environment while ensuring equitable benefits from a robust tax system for all citizens.

“Our aim remains the revitalization of revenue generation in Nigeria while sustaining an investment-friendly and globally competitive business environment,” Vice President Shettima affirmed. “Contrary to speculations, our intent is not to hinder any sector of the economy but to establish an administrative framework that secures the advantages of a thriving tax system for our populace.”