How proposed tax reform will ease burden on small businesses, spread prosperity to poor Nigerians – Presidency

Special Adviser to the president on Media and Public Communications, Sunday Dare has said the proposed tax reforms will spread prosperity to poor Nigerians.

Dare spoke in a statement on Monday, reacting to the recent gross domestic product (GDP) report of the National Bureau of Statistics (NBS).

On October 3, President Bola Tinubu asked the national assembly to consider and pass four tax reform bills.

The proposed laws include the Nigeria tax bill, tax administration bill, and the joint revenue board establishment bill.

Despite pushbacks from northern governors who had asked the national assembly to reject any legislation that may harm the region’s interests, Tinubu asked that the process continue.

Speaking on the bills, Dare said the reforms seek to reduce the tax burden on small businesses.

“The proposed tax reforms also indicate the administration’s resolve to reduce the tax burden on small businesses and spread prosperity to the poor,” the presidency said.

“The new tax regime seeks to promote equity by reducing what is known as the headquarters effect—a situation where states where company headquarters are based get more benefits because their taxes for the whole nation are remitted—in favour of spatial and demographic equity.”

Dare said the growth recorded in the third quarter (Q3) GDP report is an indication that federal government reforms are yielding results.

The National Bureau of Statistics (NBS) had earlier reported that the country’s GDP grew by 3.46 percent year-on-year in the Q3 of 2024, higher than the 3.19 percent recorded in Q2 of the same year.

Dare said the report is in line with Tinubu’s quest for a more robust boost in the economy and, by extension, a better standard of living for all Nigerians.

“The 3.46% growth indicates Nigeria is recovering from the reforms’ unintended effects,” he said.

According to Dare, the president said his administration has not and will never forget his promise of a $1 trillion economy by 2030.

He also said the president assured that once the economy is rebased by early 2025 to capture its dynamism and record significant changes that have occurred in different sectors, the country will be on its way to shared prosperity.

“I am excited by the latest report from the National Bureau of Statistics that our economy grew in the third quarter more than last quarter and even beyond projected estimates,” Tinubu was quoted as saying.

“While I welcome this development, the latest figure also shows the much work that needs to be done.

“We won’t rest until Nigerians feel the positive impacts in their pockets and experience a better living standard.

“This performance once again shows that the reforms embarked upon by the Tinubu administration to reposition the economy and ensure better fiscal management are beginning to yield fruits.”