The Federal Government has commenced the implementation of the ‘2024 Withholding Tax Regulations’.
The deduction of Tax at source implementation kicked-off on Wednesday, January 1, 2025.
According to the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, who announced the kick-off in a statement through his official X account on Wednesday, Small, Medium Enterprises (SMEs) and manufacturers are exempted from the new tax regulation.
Oyedele described the regulation as a move expected to alleviate administrative challenges and financial constraints, thereby fostering growth and innovation in the sector.
He wrote: “As part of the ongoing fiscal policy and tax reforms, the 2024 Withholding Tax Regulations, which were approved in July 2024 and published in the Official Gazette in October 2024, takes effect today, 1 January 2025”.
Recall that in July 2024, President Bola Ahmed Tinubu approved the Withholding Tax Regulations, and it was published in the Official Gazette in October. The revised regulations became effective on January 1, 2025.
The development comes amid the controversies that have continued to trail Tinubu’s four tax reform Bills currently before the 10th National Assembly. While the President has insisted on the tax reforms, Northern governors and other leaders have openly rejected them.
