Nigeria to Exempt Companies Trading Raw Food Items from Tax
By Adedapo Adesanya
Companies trading in raw food items would soon be exempted from tax, the Chairman of the Federal Inland Revenue (FIRS), Mr Muhammad Nami, has hinted.
Speaking at the 153rd Joint Tax Board meeting in Abuja, themed Harmonisation and codification of taxes at national and sub-national levels, key to achieving tax-friendly environment in Nigeria on Monday, he said ending taxation on the non-taxable item was part of the proposed tax reforms of the President Bola Tinubu-led administration.
“For the informal sector, we do not want goods and services that are not taxable to be taxed. We will have an enumeration of the sector to ensure that those that are trading in goods like tomatoes and other raw food items are not made to pay taxes.
“Also, those that are not making up to N25 million will not be allowed to pay Company Tax or Value Added Tax (VAT),’’ Mr Nami, who heads the JTB, said.
He reiterated that President Tinubu is also determined to harmonize taxes and end multiple taxation in the country, noting that, “We are lucky to have a new administration that has from day one indicated interest in eliminating multiple taxation.
“The implication is that what we call informal taxes, black taxes or whatever name it is called either at the federal, state or local government levels, will be eliminated.
“This is to encourage investment and to raise revenue generation.
“The move has become necessary because the irony is that the more taxes we have, the less revenue we generate.’’
The chairman noted that the harmonization process would further reduce the number of taxes, block leakages as well as boost revenue generation.
Mr Nami said, ‘’Once multiple taxation ends, there will be funds at all tiers of government to build roads, schools and hospitals and to secure lives and property.
“This is not another promise that will not be fulfilled; the government has announced the constitution of a committee already.”
The chairman said he recently attended the National Economic Council (NEC) meeting to speak with governors for their support to end tax multiplicity and added that the president will inaugurate the tax committee today.
He said, “We are confident that with the inauguration of the tax committee by the President tomorrow, Tuesday, we will start work immediately. It means that promises made in the past which were not kept will be kept this time.’’
