In a move to reduce the tax burden on businesses, the Presidential Committee on Fiscal Policy and Tax Reforms has proposed exempting manufacturers and farmers from paying withholding tax.
During a public consultation workshop in Lagos, the committee’s chairman, Taiwo Oyedele, stated that withholding tax is the most complex tax to comply with in Nigeria.
Oyedele explained, “We are creating an exemption for withholding tax for small businesses with a turnover of up to N50 million. For real businesses producing goods and services, we have reduced the rate to as low as 2% due to their small margins.” He added, “We have also created an exemption for manufacturers and farmers who provide inputs to manufacturers, freeing them from withholding tax obligations.”
The proposal, which according to Oyedele, has already been signed, will be made public in the coming days.
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