Tax Reforms on the Horizon: FG Prepares to Exempt Tomatoes and Other Raw Food Items from Tax

Discover how the proposed tax reforms in Nigeria aim to eliminate multiple taxation and exempt tomatoes and other raw food items from taxation.

Amidst increasing economic pressures and the critical need to bolster local trade, the Federal Government, under the auspices of the Joint Tax Board (JTB), is gearing up to revolutionize the Nigerian tax system.

The Tax Reformation Agenda

Mr. Muhammad Nami, Chairman of JTB, announced at the 153rd JTB meeting, focused on “Harmonisation and Codification of Taxes at National and Sub-national Levels: Key to Achieving a Tax-friendly Environment in Nigeria,” that the Federal Government plans to end taxes on tomatoes and other raw food items.

This reformation falls under the purview of the President Bola Tinubu-led administration’s proposed tax reforms.

Join Telegram group Join Now
Join whatsapp group Join Now

Exempting Non-taxable Goods and Services

Nami affirmed that the government seeks to ensure goods and services within the informal sector, which are not taxable, do not attract taxes.

This strategic decision aims to foster a favorable business environment for small-scale traders dealing in tomatoes and other raw food items.

Additionally, businesses with an annual revenue below N25 million will be exempt from Company Tax and Value Added Tax (VAT).

Elimination of Multiple Taxation

Nami, who also doubles as the Executive Chairman of the Federal Inland Revenue Service (FIRS), reassured the public of President Tinubu’s unyielding resolve to harmonize taxes and bring an end to the burden of multiple taxation in the country.

He said, “We are fortunate to have a new administration that has demonstrated a commitment to eradicate multiple taxation from the onset.”

The administration contends that informal, black, and multi-level government taxes discourage investment and hinder revenue generation.

Therefore, the move towards tax harmonization is deemed imperative.

Harmonization and Its Benefits

Through tax system streamlining, the government aims to reduce taxes, prevent leakages, and boost revenue generation.

“Nami explained that by eliminating multiple taxation, ample funds will be available across all government levels to invest in critical infrastructure like roads, schools, and hospitals, ensuring the safety and security of lives and property.”

The tax harmonization process is not an empty promise.

The government forms committee for ambitious plan execution.

The Roadmap to Tax Harmonization

To secure nationwide support for this tax reform, Nami recently attended the National Economic Council (NEC) meeting to lobby the state governors.

With the inauguration of the tax committee, it is expected that the work on tax harmonization will commence in earnest

Tax Structure Overhaul

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, pointed out that approximately nine types of taxes are currently paid to the Federal Government.

Interestingly, state and local government councils receive more taxes than the Federal Government.

Harmonization offers businesses much-needed relief by curbing corruption and tax evasion,

alleviating the overwhelming burden they face.

The end of multiple taxation and the exemption of certain goods from taxation, such as tomatoes and other raw food items, is not just a relief to the traders but also a significant leap towards a more prosperous Nigeria.

for more info do follow /piggybank.ng


Discover more from PiggyVibes

Subscribe to get the latest posts to your email.

Leave a Comment