LG autonomy, tax reform will boost SMEs – Biz owners

The Association of Small Business Owners of Nigeria has expressed optimism that the local government autonomy and the new tax bills would benefit small businesses in Nigeria by 2025.

The year 2024 has been a tough year for Nigerians amid an increase in prices of various commodities, including foodstuffs and transportation, following the removal of the subsidy in May 2023.

In an interview with Saturday PUNCH, ASBON’s President, Femi Egbesola, said, “SMEs are looking forward to a brighter future starting from 2025. We are optimistic, especially because we anticipate the passage of the new tax bills, which include provisions to support small businesses.”

According to Egbesola, the SMEs also expect a reduction in fuel prices going by the fluctuations in exchange rates, adding that they also anticipate lower production costs as businesses transition from conventional electricity to alternative energy sources like solar.

 Egbesola also highlighted that government policies would start benefiting SMEs in the coming year, especially with the local government autonomy, saying, “Once local governments have adequate funding, they can support local SMEs by patronising them, which will increase our sales.”

Egbesola affirmed the association’s full support for the tax reform bills, stating that the tax system would be simplified under the new law.

“We are in full support because the new tax bills offer significant relief for our sector. Under the new bills, nano and micro businesses, which make up 87% of SMEs and have an annual turnover of less than N50 billion, will be completely exempted from taxes.

“Instead of dealing with over 60 different taxes, businesses will now only need to pay six taxes. Moreover, businesses can pay these taxes online, avoiding the hassle of going to various tax offices. There will also be an omnibus tax office where any tax-related issues can be resolved within seven working days, unlike before when resolving tax disputes could take years,” he explained.

Egbesola further highlighted the bill’s provision for removing Value Added Tax from essential goods and services that directly affect the everyday Nigerian.

“With VAT removed from sectors like healthcare, agriculture, transport, fuel, electricity, and foodstuff, this will make life easier for the common man and reduce the cost of these goods and services,” Egbesola stated.