The Nigerian government has announced plans to remove taxes on basic necessities like food, house rents, and public transportation services. The move aims to make these essentials more affordable for citizens.
Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, disclosed this in an interview. He explained that the policy seeks to reduce the burden of taxes on the poorest people.
The committee has identified basic necessities like food, accommodations, transportation, education, and health, and removed almost all applicable taxes, including VAT.
Additionally, the committee has recommended exempting small businesses with an annual turnover of N50 million or less from tax payments, including withholding taxes and company income tax. Their employees have also been exempted from personal income tax.
However, a 2.5% increase in tax, from 7.5% to 10%, is planned by 2025, along with corresponding reductions in personal income tax and company income tax rates.
The proposed law will be presented to the National Assembly, and its implementation timeline is yet to be determined.
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