SMEDAN To Engage SMEs On Tax Reform Bills

Posted by African Examiner Business News, Latest Headlines Tuesday, December 10th, 2024

(AFRICAN EXAMINER) –  The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) will engage with Small and Medium Enterprises (SMEs) nationwide on the implications and opportunities of the proposed Tax Reform Bills.

The Director-General of SMEDAN, Mr Charles Odii, on Monday in Abuja said the initiative aimed to educate SMEs, which constituted over 90 per cent of Nigeria’s businesses and employ more than 80 per cent of the workforce.

According to Odii, the proposed reforms are designed to reduce financial burdens on the people and promote economic growth.

He said the SMEs would significantly benefit from the reforms, including a raise in the tax exemption threshold from N25 million to N50 million in annual turnover.

“This means more small businesses will no longer pay taxes, and resources can be reinvested into their growth.

“The reforms also include the consolidation of taxes, elimination of nuisance levies, and zero VAT on exports and essential goods.

“SMEDAN urges SMEs to understand the enforcement mechanisms of the Bills to prevent potential denial of their benefits.”

“We want SMEs to fully understand the provisions of the Bills and ensure they are adequately represented in the legislative process.

“These reforms aim to reduce operational costs and increase accountability in tax implementation,” Odii stated.

He explained that by eliminating arbitrary taxes and fostering transparency, SMEs could thrive, contributing to national growth and prosperity.

He said stakeholders, including Business Membership Organisations (BMOs) and local administrators, were expected to attend.

“The sessions will also tackle misinformation and fear-mongering surrounding the reforms, ensuring that stakeholders make informed decisions.

“I wish to commend the Presidential Fiscal Policy and Tax Reforms Committee for prioritising the needs of SMEs in its recommendations.

“Updates on the engagement sessions will be available on SMEDAN’s official website and social media platforms,” he said. (NAN)

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