The Federal Government has assured small businesses of exemption from taxes by raising the tax exemption threshold forSmal and Medium scale Enterprises( SMEs) from N25 million to N50 million in annual turnover.
The Tinubu administration also announced a nationwide engagement exercise through the Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, to discuss the implications and opportunities of the proposed tax reform bills with SMEs.
The government said the purpose of the engagement is to provide clarity, dispel misconceptions, and foster a better understanding among key stakeholders, including local administrators.
The Director General of SMEDAN, Charles Odii, who stated this in a statement issued on Monday, 9 December, 2024, emphasised the importance of basing debates on accurate facts and proposals contained in the bills.
“We want SMEs to fully understand the implications of these bills and be adequately represented in the ongoing legislative process.
“Our priority is for SMEs to reap the full benefits, which will ultimately boost the economy, given that they are the engine of growth.
“Proposals such as the consolidation of taxes, elimination of nuisance levies, expansion of exemptions, and zero VAT on exports and essential goods reflect the true wishes of SMEs as identified during previous engagements and surveys.”Odii said
The SMEDAN DG stressed the importance of understanding enforcement mechanisms, saying: “SMEs need to understand what enforcement would look like if the bills are passed, so they are not denied the benefits intended for them.
“With over 90 per cent of businesses in the country and more than 80 per cent of employment dependent on SMEs, it is crucial to eliminate arbitrary taxes that increase operational costs as proposed by the bills and to ensure SMEs can hold relevant authorities accountable for proper implementation.”
Odii also noted that the engagement sessions would help dispel misinformation and fear-mongering surrounding the bills, ensuring productive and informed discussions.
