New tax laws will ease burden on poor, small businesses – Oyedele

By Kunle Sanni –

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, on Thursday described the newly signed tax laws as “pro-poor,” stating that they will ease the burden on low-income earners, small business owners, and ordinary Nigerians.

He made this known while addressing State House correspondents shortly after President Bola Tinubu signed four tax bills into law.

“More than one-third of workers in both the private and public sectors will now be completely exempted from Pay-As-You-Earn (PAYE) tax,” Oyedele said.

“They will no longer have to pay personal income tax. For small businesses — over 90 per cent of micro, small, and nano enterprises — they will no longer worry about paying corporate income tax, charging VAT, deducting withholding tax, or paying PAYE for their employees,” he added.

Oyedele said the reforms would leave “more money in the hands of the ordinary Nigerian to take care of their daily needs,” noting that a new zero-rate VAT framework now applies to essential items.

“Any traces of VAT in food, education, and medical or healthcare have been completely removed. We should begin to see the prices of those items come down,” he explained.

He further clarified that relief has been extended to sectors where households spend the most, adding, “Transportation, accommodation, and housing are exempt from VAT. These collectively account for more than 80 per cent of where Nigerians spend their money. That’s a huge relief.”

Oyedele also stated that the reforms include measures to improve tax collection efficiency, enhance transparency, and reduce leakages within the system.