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The Federal Executive Council (FEC) has approved the recommendations put forward by the Presidential Committee on Fiscal Policy and Tax Reforms as part of the Federal Government’s economic stabilization plans.
Bayo Onanuga, Special Adviser to the President on Information and Strategy, revealed this following the FEC meeting. He stated that the new reforms include tax reliefs aimed at encouraging companies to expand their workforce and offering personal income tax relief to workers in both the public and private sectors earning between N200,000 and N400,000 annually.
The tax relief granted to companies hiring additional staff serves as an incentive to boost employment and encourage business expansion, thereby improving capacity and reducing the nation’s unemployment rate.
Onanuga emphasized that the economic stabilization plan is based on the recommendations of the Presidential Tax Committee, which was established last year. In addition, the FEC has approved a bill facilitating collaboration between federal and state governments to eliminate certain levies, such as haulage and livestock fees, market taxes, and other similar charges. Following this approval, the Economic Stabilization Bills will now be forwarded to the National Assembly for consideration.
“The Council has also approved the Economic Stabilization Bills, incorporating the proposals of the Presidential Committee on Tax and Fiscal Policy Reforms. These bills aim to amend existing income tax laws, promote exports, reform the foreign exchange (FX) regime, and enhance FX liquidity. One of the key provisions offers tax relief to companies that generate incremental employment,” Onanuga explained.
He added, “Another provision grants personal income tax relief to employees in both public and private sectors with annual incomes between N200,000 and N400,000. Moreover, the bill promotes federal-state collaboration to suspend certain taxes on small businesses and vulnerable populations, including road haulage levies, business premise registration fees, livestock levies, and market taxes/levies.”
These reforms are expected to ease the tax burden on businesses and individuals, stimulate economic growth, and support the government’s broader objective of creating a more business-friendly environment while improving living conditions for citizens.
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