President BOLA TINUBU has approved a new withholding tax policy, replacing the old policy established in 1977. 

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, TAIWO OYEDELE announced this yesterday.

The new withholding tax policy introduces significant reforms designed to alleviate the heavy burden that the previous system imposed on farmers and Small and Medium Enterprises.

The key changes introduced are to address the identified challenges and specifically include the exemption of small businesses from withholding tax compliance and reduced rates for businesses with low margins.

It also addresses exemptions for manufacturers and producers such as farmers; measures to curb evasion and minimize tax avoidance and the ease of obtaining credit and utilization of tax deducted at source.