From Our Correspondent
The Tinubu Media Support Group (TMSG) says President Bola Tinubu’s tax reforms will significantly boost Nigerian businesses.
TheNewsZenith reports that the group expects the Organised Private Sector (OPS) to rally behind tax reform.
It advised them (OPS) to actively champion the passage of the bill into law.
The advice is in a statement from TMSG’s Chairman Emeka Nwankpa and Secretary Dapo Okubanjo.
TMSG said it was worrisome that the business community showed indifference to reforms that were beneficial to its members.
“We note that the Tinubu administration has sent four tax reform bills to the federal legislature with pro-business provisions.
“The bills will boost production, expand the economy and unleash fresh productivity.
“In one of the bills, there is a tax exemption for small companies. These are companies regarded as businesses with an annual turnover of N50 million or less.
“The current tax law grants exemptions to companies with a yearly turnover of only N25 million or less.
“We believe that there is a possibility that up to 80 per cent of businesses would benefit from the proposed exemption from paying Company Income Tax (CIT).
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“We are, therefore, jolted that no single umbrella body of business owners in the private sector has publicly spoken on the expected benefits.
“Also in the tax reform bill is a proposed policy that sets out to reduce the Company Income Tax rate from 30 per cent to 25 per cent for medium and large companies. And, those with an annual turnover of over N50 million.
“Furthermore, the President Tinubu administration is proposing to eliminate the minimum income tax of one per cent charged on gross earnings of medium and large companies that did not declare profit.
“Under the new tax proposal, the government will only tax profit.
“There is also the harmonisation of 2.5 per cent Education Tax, one per cent NITDA tax and 0.25 per cent NASENI tax.
“Many firms pay these taxes in addition to annual company income tax into a single development levy of two per cent that will be deployed exclusively to fund student loans from 2030.
“All these spirit-lifting initiatives will further reduce the tax burden on many companies operating in Nigeria.
“This is aside from eliminating the nuisance tax that many states are charging.
“We are convinced that these tax exemptions and waivers will free up additional funds in retained earnings for companies to reinvest into their businesses,” TMSG added.
However, it expressed concern that the business community has been unusually silent on a reform that would relieve their tax burden.
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