In a bid to make basic necessities affordable for Nigerians, the federal government has announced plans to remove taxes on food, house rents, and public transportation services.
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This was disclosed by Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during an interview on Channels Television.
According to Oyedele, the policy aims to alleviate the burden of taxes on the poorest people, who spend a significant portion of their income on basic necessities.
“We’ve decided that food should not just be exempt, it should be zero-rated. We’ve removed almost all the taxes applicable to basic necessities like food, accommodations, transportation, education, and health,” he said.
The committee has also recommended the exemption of small businesses from tax payments, including withholding taxes and company income tax, for businesses with an annual turnover of N50 million or less.
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Also, employees of these businesses will be exempted from personal income tax.
However, the committee has proposed a 2.5 percent increase in tax, from 7.5 percent to 10 percent by 2025, to generate revenue for the government.
Oyedele explained that the increase would be offset by a corresponding reduction in personal income tax for those earning N1.5 million or less per month.
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