- Safiu Kehinde
The Federal Government has exempted farmers, Small and Medium-sized Enterprise (SMEs) from taxation as part of the new regulations of the ongoing fiscal policy and tax reforms.
This was disclosed in a post on X by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele.
According to Oyedele, the new regulation will see the exemption of farmers and small business owners, with annual turnover not exceeding N25 million, from Witholding Tax.
Oyedele disclosed that the new regulations will commence on the 30th September 2024 while implementation will begin on the 1st of January 2025.
Meanwhile, Oyedele noted that there is a provision permitting the Federal Inland Revenue Service (FIRS), with the approval of the Finance Minister, Wale Edun, to issue guidelines for the implementation of the Regulations.
Also included in the new regulations is the grant rates reduction for taxable organizations and business ventures.
The post read; “The Deduction of Tax at Source (Withholding) Regulations, 2024, has been published in the official gazette.
“The Regulations grant rates reduction and full exemption from Withholding Tax to many businesses, including SMEs with annual turnover not exceeding N25 million.
“The commencement date of the new Regulations is 30th September 2024, while implementation begins on 1st January 2025 to allow for a minimum of 90 days notice required for tax changes in line with the 2017 National Tax Policy.
“However, there is a provision permitting the FIRS, with the approval of the Finance Minister, to issue guidelines for the implementation of the Regulations and where appropriate, permit early application of the Regulations from 1st July, 2024.
“The essence of this provision is to enable persons who wish to adopt the Regulations early to do so given that it is generally providing reliefs to businesses rather than imposing a burden.”