Opeyemi Bamidele: Tax reform bills will ease burden on low-income earners, small businesses

Opeyemi Bamidele, senate majority leader, says the proposed tax reform bills will provide significant relief for low-income earners and small businesses.

Bamidele spoke in Ado Ekiti, the Ekiti state capital, on Thursday during an empowerment programme for his constituents.

He said the senate is reviewing public concerns on the tax reform bills and would consider them immediately after the Eid and Easter holidays.

The senate leader noted that the reforms would address inequalities in the tax system, ensuring that Nigerians earning N1 million or less annually would be exempted from taxation.

“Under the proposed tax regime, employees earning N1,000,000 or below per annum will be completely relieved of tax burden,” he said.

“Besides, all businesses with N50 million capital or below will now enjoy tax exemptions. Value Added Tax (VAT) will no longer be placed on exports and essential consumptions by the masses.”

Bamidele listed essential goods and services that would be exempt from VAT to include food items, education, transportation, and medical treatment.

He described the tax reform bills as “game changers” that would significantly reshape Nigeria’s fiscal environment.

“The house of representatives has successfully passed the tax reform bills. The senate is looking into all areas of public concern,” he said.

“When we resume plenary after the Eid and Easter holidays, the senate will consider the bills again, resolve all areas that Nigerians have expressed concerns about, and pass them purely in the national interest”.

Bamidele also reaffirmed the senate’s commitment to reviewing the 1999 Constitution, saying the process is ongoing and would lead to a more efficient and responsive governance system.

“The amendment is designed to evolve a governance system that serves the interests of all, regardless of political bias, ethnicity, or religious affiliation,” he said.

He added that the senate is working on legal frameworks to stabilise fiscal and monetary policies, prioritise security, and curb consumer price inflation.

“The senate will continue to provide the legal and regulatory environment that will incentivise foreign direct investments,” he said.

“We are convinced that this initiative will not only positively impact our foreign exchange earnings but also stabilise the macro-economic landscape.

“The initiative will, no doubt, boost the country’s revenue generation, improve the living conditions of the people, and increase the country’s gross domestic product (GDP).”

Bamidele said the amendment of the National Social Investment Programme (NSIP) Act, 2024, will strengthen the initiative as a sustainable tool for poverty alleviation.

He also pointed to the passage of the Investments and Securities Bill, 2024, signed into law by President Bola Tinubu, and amendments to the Nigeria Data Protection Act, 2023, which now mandate social media platforms and bloggers to establish physical offices in Nigeria to enhance accountability in the digital space.