The National Association of University Students (NAUS), have commended the federal government for it recent proposal to the National Assembly introducing a 50% tax relief to businesses, aimed at supporting them in raising their employees’ salaries.
BusinessDay reported that companies that raise salaries or help with transportation costs for their lower-paid workers could get a 50% tax break from the Federal Government, according to a new tax reform bill.
This proposal is part of a larger bill aimed at overhauling Nigeria’s tax system. The bill, submitted to the National Assembly on October 4, 2024, has a long official title: “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, and Instruments, and Related Matters.”
Oguntade Omodolamu, president of NAUS described the step as “a move towards national development,” adding that the initiative demonstrates a significant step towards fostering economic growth and enhancing the well-being of the workforce.
He added that the students recognises the critical role that businesses play in driving the economy and creating job opportunities. By offering tax incentives to firms and companies that suffers from effect of transport subsidy, salary increment due to the cost incurred in 2023 and 2024 Calendar years.
“The government is not only facilitating their sustainability but also enabling them to invest in their workforce by increasing salary levels. This, in turn, will not only benefit employees by improving their standard of living but also contribute to overall economic development.”
It, however, urge the federal government to prioritise the swift implementation of the bill, stating that the timely execution would enable businesses to plan effectively for the future and provide much-needed relief to employees who have been facing financial challenges.
“By expediently rolling out this tax relief measure, the government will send a strong signal of its commitment to supporting the business community and the workforce,” it said.
The NAUS president added that the Senate leadership of the association is committed to supporting initiatives that promote economic growth, job creation, and the well-being of Nigerian Students and Nigerians at large.
“We stand ready to collaborate with the government and other stakeholders to ensure the successful implementation of this tax relief program and to monitor its impact on businesses and employees.”
“We look forward to witnessing the positive outcomes that this initiative will bring to the business environment and the workforce, God bless the Federal Republic of Nigeria.”
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