Tax Reform Bills: Fiscal Responsibility Commission Chairman Highlights Benefits for States, Low-Income Earners
The Fiscal Responsibility Commission (FRC) has expressed strong support for the Tax Reform Bills currently before the National Assembly.
These bills, developed by the Presidential Fiscal Policy and Tax Reforms Committee, aim to enhance fiscal governance, transform Nigeria’s public revenue architecture, and stimulate economic growth.
The Chairman of the FRC, Victor Muruako, made this known during an interaction with academics and journalists at the Fellowship Lecture and Investiture Ceremony of the Capital Market Academics of Nigeria (CMAN) in Abuja.
According to the FRC, the bills have been carefully analyzed and found to promote a more equitable distribution of resources across Nigeria’s federating states, without favoring any particular region.
Muruako emphasized that the proposed reforms are designed to benefit all Nigerians, with a particular focus on low-income earners and Micro, Small, and Medium Enterprises (MSMEs). The FRC believes that the reforms will enhance economic inclusivity and growth by addressing key issues in the country’s fiscal policies.
Some of the key benefits of the tax reforms include tax relief for low-income earners, with individuals earning less than N1.7 million annually paying less income tax. Additionally, small businesses with turnovers below N50 million will be exempt from tax, and over 90% of small businesses will no longer be required to pay profit tax. The reforms also promise to simplify the tax system by reducing the number of taxes and levies, making it easier for businesses to comply with tax regulations.
Muruako also highlighted that the proposed reforms would increase revenue for subnational governments, giving states and local governments a larger share of VAT revenue to improve public services. He expressed confidence that the reforms would boost savings and capital formation at the household level, particularly through the tax relief for low-income earners. The FRC Chairman further praised President Bola Tinubu for allowing room for further dialogue on the bills and appealed to all stakeholders to support the reforms for their transformative potential to benefit all Nigerians.
