The federal government is set to introduce tax breaks aimed at SMEs that increase their workforce.
These incentives are part of the revised Inflation Reduction Act, which will also include import duty exemptions and tariff reductions.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, revealed in an AIT interview that businesses hiring more staff will benefit from these tax reductions.
“The Inflation Reduction Act will feature tax incentives for employment, lowering operational costs for companies,” Edun said.
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This move is designed to mitigate rising operational costs, especially those influenced by foreign exchange rate fluctuations for businesses involved in importing and processing raw materials.
Additionally, VAT exemptions on essential items and the removal of withholding tax for manufacturing and SMEs are also included in the upcoming executive orders.
The executive orders, expected to be finalized within the next two weeks, aim to support small and medium-sized enterprises by reducing their financial burdens and promoting job creation amid high inflation rates.
