The Federal Government of Nigeria in an effort to promote growth and development has restated its commitment to supporting micro, small, and medium enterprises through tax incentives.
According to the Executive Chairman of the Federal Inland Revenue Service, Executive Chairman, Zacch Adedeji,
At the inaugural MSME Finance Awards convened by The Economic Forum Series, the Executive Chairman of the Federal Inland Revenue Service, Executive Chairman, Zacch Adedeji, explained that the federal government was focused on creating an environment that enabled MSMEs by providing tax relief and exemptions
“The Federal Government, through FIRS, has introduced reforms to reduce the financial burden on MSMEs. Small businesses, as classified under the Company Income Tax Act, are exempt from company income tax and are also exempt from the obligation to collect value-added tax”
He noted that the government’s tax policies were designed to support MSMEs by reducing the complexity of tax compliance, encouraging greater participation in the formal economy, and ensuring that more businesses benefit from tax incentives.
He also revealed that FIRS was considering proposals to further raise the threshold for tax exemptions to bring more MSMEs into the fold.