{"id":33282,"date":"2024-05-31T12:58:48","date_gmt":"2024-05-31T12:58:48","guid":{"rendered":"https:\/\/abujacityjournal.com\/livenews\/?p=33282"},"modified":"2024-05-31T12:58:48","modified_gmt":"2024-05-31T12:58:48","slug":"exempt-manufacturers-and-farmers-from-wht-presidential-tax-committee","status":"publish","type":"post","link":"https:\/\/abujacityjournal.com\/livenews\/2024\/05\/31\/exempt-manufacturers-and-farmers-from-wht-presidential-tax-committee\/","title":{"rendered":"Exempt Manufacturers and Farmers From WHT ~ Presidential Tax Committee"},"content":{"rendered":"<p>The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has proposed that the federal government exempt manufacturers and farmers from paying withholding tax (WHT) to alleviate the tax burden on businesses. This recommendation was made during a public consultation workshop on proposed changes to the National Tax Policy held in Lagos.<\/p>\n<p>Mr. Oyedele highlighted the complexity and compliance difficulties associated with withholding tax in Nigeria. He stated, &#8220;We set out the objectives of what we want to do with withholding tax regulation. One of them is to simplify the tax. We want to reduce the burden on businesses, promote competitiveness, equity, ease of compliance, and tax avoidance, detect tax evasion, and reflect what is happening globally.&#8221;<\/p>\n<p>The proposed changes include:<\/p>\n<ul>\n<li>Exempting small businesses with a turnover below N50 million from withholding tax.<\/li>\n<li>Reducing the withholding tax rate for real businesses to as low as 2% for those producing goods and services due to their small margins.<\/li>\n<li>Exempting manufacturers and their suppliers, such as farmers, from withholding tax.<\/li>\n<\/ul>\n<p>Mr. Oyedele mentioned that the proposal had already been signed and would be made public soon. Additionally, he noted that businesses not registered with the Corporate Affairs Commission (CAC) would face a penalty, with tax agents deducting 200% of the normal tax rate to encourage registration.<\/p>\n<h3>Background<\/h3>\n<p>Withholding Tax (WHT) in Nigeria is a method of collecting Income Tax in advance, with deductions ranging from 5% to 10% depending on the transaction, and returns due by the 21st of each succeeding month. The penalty for late filing is N25,000 for the first month and N5,000 for each subsequent month of non-compliance.<\/p>\n<p>Businesses, particularly in the manufacturing sector, have long complained about the burden of multiple taxation. The Manufacturers Association of Nigeria has previously expressed concerns that its members face up to 60 different taxes and levies, negatively impacting the sector&#8217;s productivity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has proposed that the federal government exempt manufacturers and farmers from paying withholding tax (WHT) to alleviate the tax burden on businesses. This recommendation was made during a public consultation workshop on proposed changes to the National Tax Policy held in [&hellip;]<\/p>\n","protected":false},"author":27,"featured_media":33283,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[],"class_list":["post-33282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/33282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=33282"}],"version-history":[{"count":3,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/33282\/revisions"}],"predecessor-version":[{"id":33294,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/33282\/revisions\/33294"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/33283"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=33282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=33282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=33282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}