FEC approves tax committees’ recommendations, offers tax breaks to firms

The Federal Executive Council (FEC) has approved the recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms in the economic stabilisation plans of the Federal Government.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated this after the FEC meeting, saying the new reforms include tax reliefs for companies employing more staff and personal income relief to workers in both public and private sectors earning between N200,000 and N400,000.

The tax relief offered to companies employing more staff is a form of incentive by the Federal Government to encourage companies to employ more staff and engage in expansion projects thereby improving capacity and reducing unemployment.

According to him, the economic stabilisation plan embodies the recommendations of the tax committee set up last year. Onanuga also noted that the FEC approved the bill seeking the collaboration of federal and state governments to remove haulage levies, livestock levies, market taxes and the like adding that sequel to the approval by the FEC, the Economic Stabilisation bills will be transmitted to the National Assembly.

“The Council also approved the Economic Stabilisation Bills, which embody the recommendations of the Presidential Committee on Tax and Fiscal Policy Reforms set up last year. The bills seek to amend the income tax laws, promote the export of goods and services, reform the exchange rate regime and unlock FX liquidity. One of the bills offers tax relief to companies that generate incremental employment.

“Another offers personal income relief to people in private and public employment, from N200,000 to N400,000. Another bill seeks federal and state collaboration to suspend certain taxes on small businesses and vulnerable populations. Among the taxes to be axed are road haulage levies, business premise registration levies, livestock levies and market taxes/levies,” he said.