FG Intoduces New Tax Plan For Small Businesses
Nigeria’s Federal Government has introduced a new tax policy that will require informal sector workers such as traders, mechanics, and tailors to pay a levy based on their yearly earnings.
The policy places a 1 percent presumptive tax on the annual turnover of small businesses operating outside the formal tax system.
Authorities say the move is aimed at bringing more informal businesses into the country’s tax structure.
Officials explained that the measure forms part of broader fiscal reforms planned for the 2025 and 2026 period.
The government believes widening the tax net will help improve revenue and reduce reliance on a small group of registered taxpayers.
Many small business owners are now studying the policy to understand how it will affect their operations as the government prepares to implement the reform across the country.
