FG Wants Additional Tax Exemption for Small Businesses

The exemption of small businesses from the payment of Tertiary Education Tax (TET), which is being collected by the Federal Inland Revenue Service (FIRS) in the new draft Finance Bill 2020 has been proposed by the federal government.

FG hopeful of higher revenue as stamp duty tax yields N66b
FG hopeful of higher revenue as stamp duty tax yields N66b

This was disclosed by the Chairman, Drafting Sub-committee and member of Fiscal Policy Reforms Committee, Ajibola Olomola, at a virtual consultation and stakeholder engagement on Friday to discuss the economic and fiscal policy drivers underpinning the bill.

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The Fiscal Policy Reforms Committee which is chaired by the Special Adviser to the President on Economic Matters, Dr. Adeyemi Dipeolu, said all companies registered in Nigeria are required to pay TET at 2% of assessable profits for each year of assessment.

Olomola said the proposal for Finance Bill 2020, “is to introduce an amendment to the Tertiary Education Tax Act, to exempt small businesses from Tertiary Education Tax.’

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He maintained that this is part of the measures and incentives being introduced by the Federal Government to assist small businesses.

He said: “The Finance Bill 2020 will include certain provisions that allow the tax authorities to deploy information technology for the collection of taxpayer information of tax and reduce the cost of collection.

“In light of this proposal, stringent rules are also proposed to secure taxpayer confidentiality from unauthorized access by third parties. The Finance Bill 2020 will look to introduce significant penalties for breach of data confidentiality by tax officials.

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