Monday, September 1, 2025
28.8 C
Lagos

FG Plans Lower Taxes for SMMES to Stimulate Economy

The Federal Government is set to reduce the income tax rates payable by Small, Micro and Medium Enterprises (SMMEs) in the country to encourage more start-ups in Small, Micro and Medium Enterprises, boost the profitability of the existing ones, generate new jobs and make higher contribution to the Gross Domestic Product (GDP).

The new incentives for SMMEs are part of the recommendations presented to the Minister of Finance, Mrs. Kemi Adeosun, by the 12-member Committee she established, chaired by Professor Abiola Sanni, to review the current National Tax Policy (NTP) in Abuja, Thursday.

The Committee noted that lowering the taxes payable by Small, Micro and Medium Enterprises would encourage compliance, promote the growth of SMMEs and expand the manufacturing base of the nation through their activities.

Another recommendation suggested for implementation relates to the abolition of minimum tax, which results in loss making companies been required to pay tax.

The Minister assured that a team would be set up by the Ministry to implement the recommendations of the Committee through administrative measures without delay, while those that require legislations would be forwarded to the Federal Executive Council for consideration. “We need to deal with legislations that need to be changed. Nigeria cannot afford to be running with antiquated tax laws,” she emphasised.

The new Tax Policy has also recommended the enactment of a number of legislation amendments including the law to tax treatment the taxation of Real Estate Investment Trusts (REITs).

”In other climes a REIT is seen as transparent or flow through entity that is not different and separate from its unit holders/investors. The income of the REIT is treated as the income of the unit holders or investors and therefore taxed at that level,” the report clarified rather than the current provisions, which amount to double taxation.

Earlier in his remarks, the Chairman of the Committee, Professor Abiola Sanni said that the report contained some innovations in terms of suggestions, including 20 implementation strategies, explaining that some of the strategies required legislations while others could hit the ground running.

“We believe that at the end of the day if the recommendations contained in this report are implemented, Nigeria will witness a transformation of the economy as a whole,” he pointed out.

spot_img
spot_img

Hot this week

Ecobank Nigeria @ 40: Group Unveils N60m in Cash Rewards Program for Customers

Ecobank Nigeria, a subsidiary of the leading pan-African banking...

GOCOP 2025: Conference on Governance Challenges, Prospects Set for October 9

The Guild of Corporate Online Publishers (GOCOP) has announced...

NCC Advances Cybersecurity Framework to Safeguard Nigeria’s Telecom Infrastructure

L-R: President, International Youth Parliament, Hon. Promise Digos; Chief...

Northwest: The Lion’s Share of Tinubu’s Projects

By Tanimu Yakubu Director-General Budget Office of the Federation The Lagos Illusion The...

From Devaluation to Domination: How Tinubu’s Exchange Rate Reforms Turned the Naira into Nigeria’s Export Engine

By Tanimu Yakubu When President Bola Ahmed Tinubu’s administration...

Topics

GOCOP Congratulates Femi Soneye on Winning NIPR Spokesperson of the Year 2025 Award

The Guild of Corporate Online Publishers (GOCOP) extends its...

Reinsurance: The Safety Net for Sustainable Insurance Growth in Africa

Insurance business has its elements of risk just as...

Adeosun: FG Committed to Infrastructure Development

The Minister of Finance, Mrs. Kemi Adeosun has told...

Nigeria, Niger Republic Sign Agreement on Border Frequency Co-ordination

Nigeria and Republic of Niger have signed a bilateral...

FOR THE RECORD: Weakening Growth in Sub-Saharan Africa Calls for Policy Reset

Growth lowest in 15 years, with significant variation across...

Visafone Test-runs 4G LTE Internet to Deepen Broadband Services

Visafone, MTN Nigeria’s subsidiary has began the test-run of...

Sovereign Trust Insurance: N1.5bn Claims Paid in 1st Half of 2022

Sovereign Trust Insurance Plc has continued to demonstrate unwavering...

Nigeria’s Advertising Industry Valued at ₦605.2bn- PwC Report

A new report commissioned by the Advertising Regulatory Council...
spot_img

Related Articles

Popular Categories

spot_imgspot_img