The Federal Government has exempted farmers, small businesses and manufacturers from paying withholding tax.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele who disclosed this on Tuesday via a post on his X handle – said the move is part of the ongoing tax reforms approved by the President

Withholding tax was introduced into the Nigerian tax system in 1977 to serve as an advance payment of income tax on specified transactions.

It was designed to provide the government with regular revenue flow and to serve as a means of curbing tax evasion

The approved regulation is expected to be published in the official gazette in the coming days