The National Association of University Students has praised the Federal Government for proposing a 50 percent tax relief to incentivize businesses to raise employee salaries.
Earlier reports indicated that the government’s new legislative bill aims to reform Nigeria’s tax system by providing tax relief for companies that increase wages or offer transportation allowances to support low-income workers.
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 incentivize salary adjustments.
According to a section of the bill, companies will be allowed an additional 50 percent deduction in their relevant assessment years 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 workforce’s well-being.
“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 prioritize 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.”
