Vice-President Shettima Defends New Tax Reforms, Pledges End to Multiple Levies and Relief for Small Businesses

VP Kashim Shettima explains how 2026 tax reforms will eliminate multiple levies on small businesses and support low-income earners. Read the full report.

By: AXL Media

Published: Mar 5, 2026, 4:32 AM EST

Source: The information in this article was sourced from Newsdiaryonline

Presidential Address at Interfaith Gathering Clarifies Tax Objectives

Vice-President Kashim Shettima has come forward to address public concerns regarding the federal government's ongoing tax overhaul. Speaking on Thursday at the State House in Abuja during an interfaith breaking of fast—an event coinciding with both Ramadan and Lent—Shettima delivered a strong defense of President Bola Tinubu’s economic roadmap. He stated that the new tax structure is a deliberate tool for poverty reduction, specifically engineered to streamline the confusing and often predatory system of multiple charges that have historically stifled the growth of small and medium-sized enterprises (SMEs) across Nigeria.

Eliminating Multiple Levies to Support Small Businesses and Low-Income Earners

A central pillar of the reform, according to the Vice-President, is the protection of the most vulnerable economic actors. Shettima noted that for too long, small businesses have been crushed by overlapping levies from various tiers of government. The proposed reforms aim to consolidate these charges into a more transparent, singular framework. Furthermore, he highlighted that the plan includes significant tax exemptions and reductions for low-income earners. By shifting the tax burden away from those at the bottom of the economic ladder, the administration hopes to increase disposable income and stimulate local consumption, which is vital for a robust economic recovery.

Countering "False Narratives" and Misinformation

Shettima took the opportunity to address critics and opposition figures who have labeled the tax reforms as "anti-poor." He was blunt in his assessment, stating, "The same people who are shouting hoarse that the tax reform is meant to pulverize and pauperize the poor are far from the truth." He urged the members of the Federal Executive Council, the Central Bank Governor, and other senior officials in attendance to become active communicators. The Vice-President emphasized that the government must "go out and tell the truth," educating Nigerians on the long-term benefits of the reforms to prevent the spread of political falsehoods.