Business a.m.
The Nigerian government has recently announced the implementation of a new initiative, the Tax Identification Consolidation and Collaboration (TICC), which aims to broaden the tax base, expand the tax net, and create a more equitable business environment.
Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy Tax Reforms, disclosed the announcement recently on his official X account.
Oyedele explained that the TICC is part of the Economic Stabilisation Bills (ESB) approved by the Federal Executive Council on Monday (September 23). The ESB, he said, aims to amend about 15 different tax, fiscal, and establishment laws to facilitate economic stability and support sustained inclusive growth in the country.
“The Economic Stabilisation Bills (ESB) which have been approved by the Federal Executive Council contain some recommendations of the Presidential Fiscal Policy and Tax Reforms Committee as part of the Accelerated Stability and Advancement Plan (ASAP) of the government.
“The ESB seeks to amend about 15 different tax, fiscal, and establishment laws to facilitate economic stability and set the country on the path for sustained inclusive growth.
“Introduction of “Tax Identification Consolidation and Collaboration (TICC)” initiative to expand the tax base, widen the tax net, and create a level playing field for businesses” the committee chairman stated.
Oyedele further highlighted the proposed changes in the Economic Stabilisation Bills (ESB), which are designed to achieve multiple objectives, including:
- Reducing inflation and stabilising prices
- Complementing monetary policy measures with appropriate fiscal interventions to strengthen the naira, maintain exchange rates convergence, and promote fiscal discipline and consolidation
- Enhancing job creation and poverty alleviation
- Boosting export promotion and diversification.
Oyedele further disclosed that the proposed changes in the Economic Stabilisation Bills will include zero rated VAT, improved incentive regime to promote exports, tax reliefs for private sector employers who provide wage awards and transport subsidies, and tax relief for companies that generate incremental employment and retain such employees for a minimum of three years.
The proposed changes in the ESB also include collaboration between the federal and state governments to suspend certain taxes on small businesses and vulnerable populations, including road haulage levies, business premises registration, animal trade and produce sales tax, fees for bicycles, trucks, canoes, wheelbarrows, and carts, and taxes and levies on shops, kiosks, and markets.
These measures, according to Oyedele, are intended to provide financial relief to small businesses and vulnerable groups, while also promoting economic stability and growth.
Business a.m learnt that the bills are now set to be transmitted to the National Assembly for passage into law.
