-Deborah Akinyosoye
Taiwo Oyedele, the chairman of the presidential committee on fiscal policy and tax reforms, recently announced that withholding tax exemptions have been officially published in a gazette.
Gatekeepers News reports that withholding tax (WHT) is an advance payment of income tax that can be used to offset or reduce tax liabilities, and it is deducted at rates ranging from 5 percent to 10 percent depending on the transaction.
Oyedele also mentioned that the federal government has approved the exemption of small businesses earning N25 million annually and below from withholding tax, with a proposal to increase the threshold to N50 million yearly.
This was disclosed during a forum organized by Channels Television to commemorate Nigeria’s 64th Independence anniversary.
“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.