Dipo Olowookere
By Dipo Olowookere
The Federal Government has disclosed that it was planning to reduce the income tax being paid by Small, Micro and Medium Enterprises (SMMEs) in the country.
This, the government said, is to encourage more start-ups in the sector.
According to the FG, the new incentives for SMMEs were part of the recommendations presented to the Minister of Finance, Mrs Kemi Adeosun, by the 12-member committee she established.
The committee, chaired by Professor Abiola Sanni, was to review the current National Tax Policy (NTP).
A statement by the Federal Ministry of Finance, which disclosed this, further said the gesture was also to boost profitability of existing ones, generate new jobs and make higher contribution to Gross Domestic Product (GDP).
The statement stated that the Committee, in its recommendation, noted that lowering the taxes payable by SMMEs would encourage compliance, promote the growth of SMMEs and expand their manufacturing base.
Another recommendation suggested for implementation relates to the abolition of minimum tax which results in loss making companies being 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.
She said those that required 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 was quoted as saying.
The statement said that a new tax policy had also recommended the enactment of a number of legislation amendments.
