In an attempt to address multiple taxation as kicked against by a cross-section of Nigeria and the business class, President Bola Tinubu has signed four Executive Orders inclusive of the suspension of the five percent Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products.
The move was announced by Dele Alake, the Special Adviser to the President on Special Duties, Communications, and Strategy, during a briefing with State House correspondents held at the Presidential Villa in Abuja.
The president also signed the Finance Act (Effective Date Variation) Order, 2023, which defers the implementation of the changes specified in the Act from May 23, 2023, to September 1, 2023.
The adjustment is in adherence to the 90-day minimum advance notice requirement for tax changes, as outlined in the 2017 National Tax Policy.
Tinubu also signed The Customs, Excise Tariff (Variation) Amendment Order, 2023, shifting the start date of the tax changes from March 27, 2023, to August 1, 2023 with the change aligning with the principles enshrined in the National Tax Policy.
Along with these were also the suspension of the newly introduced Green Tax on Single Use Plastics (SUPs), including plastic containers and bottles and the Import Tax Adjustment levy on certain vehicles.
According to Alake, the President initiated these measures to alleviate the negative impact of the tax adjustments on businesses and reduce the burden on households across affected sectors.
He reiterated the President’s commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions.
He assured that the Tinubu administration will continue to give requisite stimulus by way of friendly policies to allow businesses to flourish in the country.
“In closing, the President wishes to reiterate his commitment to reviewing complaints about multiple taxation, and anti-business inhibitions. The Federal Government sees business owners, local and foreign investors as critical engines in its focus on achieving higher GDP growth and appreciable reduction in unemployment rate through job creation.
“The government will, therefore, continue to give requisite stimulus by way of friendly policies to allow businesses to flourish in the country.
“President Bola Tinubu wishes to assure Nigerians by whose sacred mandate he is in power that there will not be further tax raise without robust and wide consultations undertaken within the context of a coherent fiscal policy framework,” he said.