FG considers lower taxes for small businesses

As part of its economic stimulus plan, the Federal Government is considering a reduction in the income tax rates payable by Small, Micro and Medium Enterprises in the country.
The reduction in tax rates is part of the recommendations presented to the Minister of Finance, Mrs. Kemi Adeosun, by the 12-member committee, headed by Prof. Abiola Sanni of the University of Lagos, on review of the current National Tax Policy.
A reduction in income tax rates for small-scale businesses would encourage compliance, help to encourage more start-ups, boost the profitability of the existing businesses, generate new jobs and make more contributions to the nation’s GDP.
Other recommendations from the Committee include; the abolition of minimum tax, which results in loss-making companies been required to pay tax; and enactment of a number of amendments to the current tax legislation, including the one relating to the taxation of Real Estate Investment Trusts.