The Chartered Institute of Taxation (CITN) has thrown its weight behind the new tax regime of the Federal Government, saying that it provides a 20 per cent relief on annual rent paid, capped at N500,000.
At a tax awareness campaign in Abuja, the CITN President, Innocent Ohagwa, explained that essential goods and services such as food, education, healthcare, electricity transmission and non-oil exports had been granted zero-rated Value Added Tax (VAT) treatment, reducing household burdens and supporting economic activity.
He noted that compensation for loss of employment or personal injury now enjoyed higher exemption thresholds, ensuring stronger financial protection.
For businesses, especially small enterprises, he said the reforms were transformative.
According to him, companies with an annual turnover not exceeding N100 million and fixed assets not exceeding N250 million were exempt from Companies Income Tax (CIT), Capital Gains Tax (CGT) and the development levy.
This meant thousands of small businesses could now reinvest in growth, job creation and innovation.
For key sectors, targeted incentives had been introduced. He said that agriculture, aquaculture, dairy production, cocoa processing and animal feed manufacturing now enjoyed tax incentives to boost food security and encourage investment.
“The Economic Development Incentive provides tax credits for eligible capital investments. While these reforms provide significant opportunities, taxpayers must also understand that enjoying these benefits comes with responsibilities,” Ohagwa noted, regretting that a lot of misconceptions had trailed the introduction of the new tax regime.
“Over the past year, we have observed numerous misconceptions surrounding the reforms. Some people believe the reforms introduced entirely new taxes on every aspect of economic activity.
“Others have assumed that the reforms were designed solely to increase government revenue without considering the welfare of taxpayers. Some business owners have expressed concerns about compliance obligations without fully understanding the reliefs and protections available to them.
“Other sources, leading to confusion and unnecessary anxiety have received conflicting information from social media,” the CITN President noted.
