Abuja, July 2, 2024 – President Bola Tinubu has approved a new withholding tax policy for the country.
The new policy will replace the old policy introduced in 1977.Â
Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced this on Tuesday.
He said the new withholding tax policy introduced significant reforms designed to alleviate the heavy burden that the previous system imposed on farmers and Small and Medium Enterprises (SMEs).
Oyedele said the updated regime also addressed several long-standing challenges and introduced specific provisions.
With the new policy, small businesses will now be exempted from withholding tax compliance to reduce their administrative and financial burdens.
Also, businesses with low profit margins will benefit from reduced withholding tax rates, easing their cash flow and operational costs and producers, particularly farmers, will receive exemptions, fostering growth and sustainability in these critical sectors.
He said he envisage that the new withholding tax policy would bring significant relief and clarity to Nigerian businesses, promoting a more equitable and efficient tax system.
Oyedele said the newly approved regulations would be officially gazetted in the coming days. (GBN)
