The Presidential Fiscal Policy and Tax Reforms Committee has proposed plans to revolutionize Nigeria’s tax system, exempting 95 percent of the informal sector from all taxes.
Chairman of the Committee, Taiwo Oyedele, dropped the hints, while speaking to journalists at the end of the close-out retreat in Abuja, explained that the move aims to alleviate the burden of multiple taxation on small businesses and low-income individuals.
He noted that the informal sector is populated by citizens working hard to earn a legitimate living, adding that the in the view of the committee, people in this category should not be over-burdened with taxation, but rather support to grow economically to a point where they can fit into the more affluent categories before imposing taxes on them.
He further explained that a lot is put into consideration to have come to the recommendation, noting the those who earn between 25 million naira and less per annum should be expected from paying all forms of taxes, including income and value added tax (VAT).
