The chairman of the Presidential Fiscal Policy and Tax Reforms Committee says the federal government is working on providing tax relief to 95 percent of the informal sector.
On Sunday, Taiwo Oyedele told the committee's final session that this would be accomplished by relieving companies making N25 million or less annually of many taxes that impede their long-term growth.
‘’So, we think that 95 percent of the informal sector should be legally exempted from all taxes; Withholding Tax, Company Income Tax, even payee on their staff.
‘’We’re using data to inform our decisions. Currently, if you earn N25 million a year or less, you don’t have to pay Company Income Tax, and you don’t have to worry about VAT.
‘’We think that the informal sector are people who are trying to earn legitimate living, we should allow them be and support them to grow to a point where they can then have the ability to pay taxes,” he said.
Oyedele stated that the government’s new tax drive will target the middle class, the wealthy, and the top 5 percent of industry.
"We don't want this whole effort to go down the drain, after one or two years," the chairman stated, adding that the new legislation will ensure that evaluations get upheld by future governments.
