The National Association of University Students (NAUS) has expressed its support for the Federal Government’s proposal to introduce a 50 per cent tax relief for businesses, aimed at encouraging salary increases and transportation allowances for low-income workers.
The initiative is part of a new legislative bill designed to reform Nigeria’s tax system.
Earlier this week, the Federal Government had introduced a bill 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.”
Dated October 4, 2024, the proposed bill seeks to provide tax relief for companies willing to raise salaries, thereby supporting their workforce.
A review of the bill revealed provisions for specific income tax exemptions to incentivise companies towards salary adjustments.
According to a section of the bill, businesses will be granted an additional 50 per cent deduction in their assessment years for expenses incurred during 2023 and 2024.
In response to this development, NAUS Senate President Oguntade Omodolamu, in a statement released on Monday, lauded the initiative as a vital step towards economic growth and improving the well-being of workers.
NAUS also urged the government to expedite the implementation of this bill to enable businesses to make effective plans for the future, providing relief to employees facing financial difficulties.
The statement emphasised that timely execution would demonstrate the government’s dedication to supporting the business sector and workforce.
The association further reiterated its commitment to collaborating with the government and relevant stakeholders to ensure the successful implementation and monitoring of the tax relief initiative, which it believes will promote economic growth, job creation, and the welfare of Nigerian students and the broader population.
