|THE Minister of Finance, Kemi Adeosun, last week said that the federal government will propose reduction in the income tax rate applicable to the Micro, Small and Medium Enterprises, MSMEs, as an incentive to encourage compliance and promote the sector.
The minister said this in Lagos, at a Coalition of MSMEs stakeholder Public Private Dialogue, (PPD) on Tax and Regulatory policy framework for MSMEs in Nigeria.
She said: “The qualification for the lower income tax rate applicable to small businesses should be review in line with current economic realities. The Income tax rate for small businesses should be further reduced as an incentive to encourage compliance and promote Micro, Small and Medium Enterprises, MSMEs.
“There should be a minimum threshold for VAT registration and compliance in order to protect Micro, Small and Medium Enterprises in Nigeria. “Tax authorities should establish administrative framework for amnesty and whistle blowing as part of the strategies for curbing evasion and widening the tax net,” she stated.
The minister who was represented by the Director Technical Service Department, Hajia Larai Shuaibu, also said: “Federal and State Tax authorities should respond promptly to the changing business environment as it affects tax administration and develop a workable framework to meet the tax payer demands in this respect.