Vice President Yemi Osinbajo has declared that small businesses with less than N20 million turnover should not pay tax.
Osinbajo explained that there was a need for micro, small and medium enterprises (MSMEs) to leverage technology to improve their performances.
He said: “We have exempted small businesses with a turnover of less than N20 million from tax, while those with a turnover of less than N100 million now benefit from a one-third reduction in the corporate income tax rate from 30 per cent to 20 per cent.”
The vice president on Thursday, June 24, made the declaration while featuring at the National MSMEs Discourse in Abuja, represented by the Minister of Industry, Trade and Investment, Niyi Adebayo.
He noted that he was happy to be a part of the maiden edition of the programme organised by the National MSMEs Clinic as an integral part of the National MSMEs week.
According to him, “Indeed, in this digital age, it will be important to explore strategy by which small businesses can use technology to improve their performances.
“Just as they would be useful to identifying ways and means which they could be linked to larger companies through outsourcing or supply contracts.’’
Osinabjo also disclosed that the federal government had supported MSMEs in various ways, including the MSMEs clinics conducted through a partnership with consumer-friendly MDAs.
He said: “In order to further build the profile of MSMEs and promote understanding of the sector, we decided to dedicate the whole of this week to promoting awareness about the achievements of our MSMEs and highlighting their needs.
“By so doing, we help MSMEs to have their business-related concerns addressed while they also learn firsthand about regulatory requirements.
“In addition to clinics, which so far has been held in 27 states, the initiative has been extended to encourage states to establish one-stop-shop and shared facilities.’’