Tax Reform to Boost MSME Growth and Remove Regulatory Bottlenecks
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has stated that the proposed tax reform bill will eliminate regulatory challenges and promote the growth of micro, small, and medium enterprises (MSMEs).
Stakeholder Meeting on Tax Reforms
Speaking at a stakeholder engagement on tax reforms in Abuja, Charles Odii, Director-General (DG) of SMEDAN, emphasized the importance of the bill. The event, themed “Understanding the Tax Reform Bills: Benefits and How MSMEs Can Maximise Tax,” provided business owners with insights and clarifications regarding the new tax framework.
Key Benefits of the Reform Bill
Odii outlined several advantages of the bill, stating that once it becomes law, it will:
- Eliminate multiple taxation for MSMEs.
- Exempt businesses earning below N100 million annually from VAT, CIT, PAYE, and other major tax obligations.
- Encourage business registration and expansion by reducing tax-related concerns.
He noted that Nigeria has over 39.6 million MSMEs and raising awareness about these tax benefits is essential to their success.
Call for Senate Approval
Odii commended the House of Representatives for passing the bill and urged the Senate to do the same.
“When small businesses grow, the economy thrives. This reform will eliminate unnecessary regulatory barriers and allow MSMEs to expand,” he said.
NASME Supports Tax Reform
Abdulrashid Yerima, President of the Nigeria Association of Small and Medium Enterprises (NASME), also endorsed the bill. He stressed that it addresses key challenges faced by small businesses, particularly multiple taxation and arbitrary levies imposed by various regulatory agencies.
Yerima added:
“Our members have struggled with excessive taxation, including import duties, levies on turnover, and unauthorized charges from state and local authorities.”
He further emphasized the need for effective implementation to prevent unauthorized entities from imposing additional levies on MSMEs.
The tax reform bill is expected to significantly improve the business environment for MSMEs in Nigeria. By reducing tax burdens and streamlining regulatory processes, the reform aims to foster small business growth and strengthen the country’s economy.