FG plans tax exemption cards for small businesses under ongoing reforms

The Federal Government has announced plans to introduce tax exemption cards for small businesses and informal sector operators nationwide as part of its ongoing tax reform agenda.

The initiative, according to the government, is designed to protect low-income earners and small-scale entrepreneurs from the burden of multiple taxes, levies and arbitrary charges imposed by different tiers of government.

Officials explained that the proposed tax exemption cards would serve as proof of eligibility for relief, allowing qualified small businesses and informal operators to operate without being subjected to overlapping or unlawful tax demands.

The move is expected to bring greater clarity and fairness into Nigeria’s tax system, while encouraging compliance and supporting the growth of micro, small and medium enterprises (MSMEs), which account for a significant share of employment in the country.

The Federal Government said the measure aligns with broader reforms aimed at widening the tax net, improving efficiency in revenue collection, and ensuring that taxation does not stifle productivity or livelihoods.

Further details on the rollout, eligibility criteria and implementation timeline are expected to be released in the coming weeks.