NIWA highlights impacts of new tax law on women, communities

The Neighbourhood Initiative for Women Advancement (NIWA), a leading non-governmental organisation dedicated to empowering women and youths in Nigeria, has raised concerns over the potential impact of the newly enacted tax reforms on women and grassroots communities.

In a press release issued weekend, NIWA shared its analysis of the tax policy changes, focusing particularly on their implications for women-led businesses and low-income earners.

Nancy Ifeyinwa Humphrey, Team Lead at NIWA, emphasised the organisation’s role as host of the Ebonyi State Tax Justice and Governance Platform, reaffirming its commitment to ensuring that the benefits of the new tax regime are equitably distributed, especially among vulnerable populations.

“The new tax laws represent a significant shift in Nigeria’s fiscal landscape. Their implications must be fully understood, especially by those most likely to be affected, such as women and low-income communities,” Nancy stated.

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One of the notable provisions in the new legislation is the exemption of small companies with an annual gross turnover of ₦50 million or less from several taxes, including the Companies Income Tax (CIT), Capital Gains Tax (CGT), Value Added Tax (VAT), Withholding Tax (WHT), and the newly introduced Development Levy.

This threshold, previously set at ₦25 million, is viewed as a welcome development that could ease compliance burdens and foster the growth of women-led small and medium enterprises (SMEs).

However, NIWA cautioned that while the reforms offer some relief, they lack a gender-responsive framework. The absence of specific tax credits, waivers, or support programs tailored to women, particularly those in the informal sector, could dilute the reforms’ impact on female entrepreneurs.

Despite this, NIWA commended the government’s efforts to promote tax fairness. Among the measures lauded were the exemption of individuals earning ₦800,000 or less annually from personal income tax, zero VAT on essential goods and services such as food and medicine, a 0% rent deduction (capped at ₦500,000) for employees and low-income earners.

These safeguards, NIWA noted, are intended to cushion rural households and economically vulnerable women from the regressive effects of taxation.

Still, the organisation emphasised that the success of these measures depends on robust public awareness and transparent implementation. “We will closely monitor the application of these exemptions to ensure they deliver real financial relief for women, especially at the grassroots level,” the statement read.

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To address the widespread knowledge gap, NIWA announced a series of community-driven educational initiatives aimed at increasing tax literacy.

Planned activities include: Community workshops and sensitisation campaigns conducted in local languages; Distribution of simplified, user-friendly tax information materials; Engagements with community leaders, women’s groups, and local authorities; Collaboration with the Ebonyi State Internal Revenue Service (EBSIR) to enhance compliance and promote equity.

“Our mission is to ensure that women and marginalised groups are not left behind in the implementation of these reforms. We are committed to advocacy, education, and accountability,” Nancy added.

NIWA concluded by calling on all stakeholders including government agencies, civil society organizations, and the media to collaborate in ensuring that the principles of fairness and empowerment embedded in the tax reforms are realized for all Nigerians.