SMEDAN to engage SMEs on implications, benefits of tax reform bills

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has announced a nationwide engagement exercise to discuss the implications and opportunities of the proposed tax reform bills with businesses.

In a statement on Monday, Charles Odii, director-general (DG) of SMEDAN, said the exercise is to provide clarity, dispel misconceptions, and foster a better understanding among key stakeholders, including local administrators.

The DG said the engagement will kick off with a breakfast meeting in Lagos, featuring representatives from business membership organisations (BMOs) and other associations.

He added that Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, will lead a key session during the meeting.

Odii stressed the significant benefits of the reforms, including the exemption of more small businesses from taxes through raising the tax exemption threshold for SMEs from N25 million to N50 million in annual turnover.

“We want SMEs to fully understand the implications of these Bills and be adequately represented in the ongoing legislative process,” the director general said.

“Our priority is for SMEs to reap the full benefits, which will ultimately boost the economy, given that they are the engine of growth. 

“Proposals such as the consolidation of taxes, elimination of nuisance levies, expansion of exemptions, and zero VAT on exports and essential goods reflect the true wishes of SMEs as identified during previous engagements and surveys.

“SMEs need to understand what enforcement would look like if the Bills are passed, so they are not denied the benefits intended for them.

“With over 90% of businesses in the country and more than 80% of employment dependent on SMEs, it is crucial to eliminate arbitrary taxes that increase operational costs as proposed by the Bills and to ensure SMEs can hold relevant authorities accountable for proper implementation.”

He also commended the tax reform committee for its commitment to dialogue and prioritising SMEs, which drive growth and prosperity.

Odii said updates on the engagement sessions will be available on SMEDAN’s official website and social media platforms.