Fakoyejo OlalekanFederal Government is planning to stop taxes on tomatoes and other raw food items, the Executive Chairman, Federal Inland Revenue Service (FIRS), Muhammad Nami, has revealed.
Nami said FG is taking steps to end taxation on non-taxable goods and services, as well as stop multiple taxation in the informal market to encourage investments.
Join our WhatsApp ChannelSpeaking at the 153rd Joint Tax Board (JTB) meeting in Abuja, Nami disclosed that the decisions are part of President Bola Tinubu’s effort to reform the tax system in Nigeria.
While speaking at the meeting themed; “Harmonisation and codification of taxes at national and sub-national levels, key to achieving tax-friendly environment in Nigeria,” Nami said: “For the informal sector, we do not want goods and services that are not taxable to be taxed.
“We will have an enumeration on the sector to ensure that those that are trading in goods like tomatoes and other raw food items are not made to pay taxes.
“Also, those that are not making up to N25 million will not be allowed to pay Company Tax or Value Added Tax (VAT).”
The FIRS chief, who doubles as the chairman of the Joint Tax Board, stated that from day one, Tinubu had expressed his readiness to end multiple taxations, in a bid to raise the government’s revenue.
He affirmed that eliminating multiple taxation will usher in more investments, “We are lucky to have a new administration that has from day one indicated interest in eliminating multiple taxation.
“The implication is that what we call informal taxes, black taxes or whatever name it is called either at the federal, state or local government levels, will be eliminated.
“This is to encourage investment and to raise revenue generation,” he said, adding: “The move has become necessary because the irony is that the more taxes we have the less revenue we generate.”
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