Nigeria Moves to End Taxes on Tomatoes, Yam, Other Raw Food Items
- The Nigerian government is making moves to end taxes on tomatoes and other raw food items
- The Chairman of the Federal Inland Revenue Service (FIRS), and Joint Tax Board, Muhammad Nami, said the move is to encourage investment
- He said the plan is part of President Tinubu’s plan to remove taxes on non-taxable items in Nigeria
The Chairman of the Joint Tax Board (JTB), Muhammad Nami, says the Nigerian government has concluded plans to stop taxes on Tomatoes and other raw food items as moves to reduce their costs.
Nami disclosed this at the 153rd JTB meeting held in Abuja recently.
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Persons not earning up to N25 million to be excluded from company tax and VAT
He said ending taxation on the ‘non-taxable item’ was part of the proposed tax reforms of President Bola Tinubu’s administration.
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Nairametrics reports that Nami, who is also the Chairman of the Federal Inland Revenue Service (FIRS), stated that the government does not want goods and services that are not taxable to be taxed.
He said those who do not earn up to N25 million per annum will not be allowed to pay company tax and VAT.
According to Nami, President Tinubu is determined to adjust taxes and end multiple taxation in Nigeria.
The JTB revealed that multiple state taxes should be eliminated to encourage revenue generation and investment.
The FIRS boss said that the adjustment process would further reduce the number of taxes, block leakages, and boost revenue.
Federal government get nine types of taxes
The Chairman noted that the harmonization process would further reduce the number of taxes, block leakages, and boost revenue generation.
Taiwo Oyedele, the Presidential Fiscal Policy, and Tax Reforms Committee Chairman, said the federal government collects about nine types of taxes.
Oyedele revealed that the local and government councils get more taxes than the federal government, stating that the process overwhelms businesses.
The tax expert said the harmonization process will significantly reduce corruption and tax evasion.
FIRS rakes in N5.5 trillion in tax revenue in 6 months, exceeds expectations
Legit.ng reported that the Federal Inland Revenue Service (FIRS) collected a total tax revenue of N5.5 trillion for six-month period from January to June 2023. Legit.ng earlier reported that FIRS set a new record after collecting over N10 trillion in revenue in 2022.
It was the first time the revenue agency crossed the N10 trillion mark in tax revenue collection.
The agency's realisation of this feat is coming despite the fact that Nigerians have been plagued by several economic hardships in the course of the six months including naira scarcity, inflation, fuel subsidy removal and high petrol prices.
Source: Legit.ng
