Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, says withholding tax exemptions have been gazetted.
A gazette is a publication that announces new laws, decrees, regulations, treaties, and legal notices.
Withholding tax (WHT) is an advance payment of income tax which may be used to offset or reduce tax liabilities, according to the Federal Inland Revenue Service (FIRS).
WHT is deducted at varying rates ranging from 5 percent to 10 percent depending on the transaction.
Oyedele spoke on Tuesday during a forum themed ‘Nigeria’s Challenging Economy: Strategies For Recovery,’ organised by Channels Television to commemorate Nigeria’s 64th Independence anniversary.
On June 3, Oyedele said the federal government approved the exemption of small businesses from withholding tax.
According to the tax chairman, the exemption applies to businesses earning N25 million annually and below.
He said the committee is proposing to move the threshold to N50 million yearly.
Providing updates at the event on Tuesday, Oyedele announced that businesses and manufacturers can now get some relief as the withholding tax exemptions have been gazetted.
“Withholding tax exemptions has been gazetted. The only reason why it hasn’t been published today is because it’s a public holiday,” he said.
“So first thing tomorrow you will see a copy of the gazette and that provides a lot of relief not just for manufacturers but also for almost every other business in terms of taking away some of the burden about funding their working capital, even though interest rates are now quite really high.
“And also for small businesses getting the exemption from the compliance for withholding tax.”
Also, he said although the process of getting the government’s approval can be slow, the economic stabilisation bills (ESB), approved by the federal executive council (FEC), will in the next couple of days go to the national assembly.
Oyedele said the committee has the commitment from the lawmakers that they will apply the necessary speed.
