The National Association of University Students has commended the Federal Government for its proposal to introduce a 50 per cent tax relief for businesses to support them in raising their employees’ salaries.
It was reported earlier in the week that the Federal Government was introducing a 50 per cent tax relief for companies that increase salaries or offer transportation allowances to low-income workers, as part of a new legislative bill designed to reform Nigeria’s tax system.
The proposed law, titled “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,” is dated October 4, 2024, and was obtained from the National Assembly.
A review of the bill indicated that it aims to introduce certain income tax exemptions to incentivise salary adjustments.
According to a section of the bill, companies will be allowed an additional 50 per cent deduction in their relevant years of assessment for costs incurred during the 2023 and 2024 calendar years.
In a Monday statement signed by the Senate President of NAUS, Oguntade Omodolamu, the student body said the initiative demonstrated a significant step towards fostering economic growth and enhancing the well-being of the workforce.
We applaud the FG’s commitment to this cause. NAUS recognises the critical role that businesses play in driving the economy and creating job opportunities,” the student leader said.
The statement further read, “In light of the importance of this proposal, we urge the FG to prioritise the swift implementation of this bill.
“Timely execution will 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.
“The Senate leadership of NAUS 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 programme and to monitor its impact on businesses and employees.”
