The Federal Government has exempted farmers, small businesses, and manufacturers from withholding tax. This announcement was made by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, through a post on his X handle.
“As part of the ongoing fiscal policy and tax reforms, a new withholding tax regime has been approved,” Oyedele stated on social media. He outlined that the key changes address various challenges and include the following:
- Exemption of small businesses from withholding tax compliance.
- Reduced rates for businesses operating with low margins.
- Exemptions for manufacturers and producers, including farmers.
- Measures to curb evasion and minimize tax avoidance.
- Ease of obtaining credit and utilization of tax deducted at source.
This new tax scheme is designed to support economic activities and enhance compliance within the tax system.
