The Federal Executive Council (FEC) has approved a crucial policy recommendation by the Presidential Committee on Fiscal Policy and Tax Reforms, offering tax breaks to companies employing large numbers of staffs. The policy aims to encourage job creation and combat Nigeria’s rising unemployment crisis.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, made the announcement on his X handle, following the FEC meeting on Tuesday, September 24. He revealed that the new economic policy will significantly reduce taxes for companies hiring more staff, alongside tax relief for public and private sector employees earning lower incomes.
Onanuga added that the FEC also approved another bill that facilitates cooperation between the Federal and State governments to remove various taxes, including market taxes, livestock levies, and haulage taxes. The FEC approved these bills and will soon transmit them to the National Assembly for assent.
In a statement shared with 9am News Nigeria, Onanuga said, “The Council approved Economic Stabilisation Bills, which embody the recommendations of the Presidential Committee on Tax and Fiscal Policy Reforms… One of the bills offers tax relief to companies that generate incremental employment, and another offers personal income relief for employees earning between N200,000 to N400,000.”
In addition, a key provision seeks federal and state collaboration to suspend certain taxes impacting small businesses and vulnerable populations.
The committee, headed by financial expert Taiwo Oyedele from PricewaterhouseCoopers (PwC), was tasked with reviewing Nigeria’s tax laws. One significant recommendation was reducing the number of taxes from 50 to 8, which includes removing import duties on food commodities and withholding taxes.
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