In a move aimed at providing relief to Nigerian businesses and households, President Bola Tinubu has recently signed four executive orders.
The orders include the suspension of the 5% excise tax on telecommunication services and the escalation of excise duties on locally manufactured products.
Dele Alake, the special adviser on special duties, communications, and strategy to the president, made this announcement on Thursday during a press briefing at the State House.
President Tinubu’s first executive order, the Finance Act (Effective Date Variation) Order, 2023, defers the implementation date of the changes outlined in the Act from May 23, 2023, to September 1, 2023. This extension ensures compliance with the 90-day minimum advance notice for tax adjustments, as stipulated in the 2017 National Tax Policy.
Additionally, President Tinubu signed the Customs, Excise Tariff (Variation) Amendment Order, 2023. This order shifts the commencement date of the tax changes from March 27, 2023, to August 1, 2023, aligning with the National Tax Policy.
Another significant move by President Tinubu was the suspension of the recently introduced Green Tax on Single Use Plastics (SUPs), which encompasses plastic containers and bottles. This decision aims to provide relief to businesses affected by the newly implemented tax.
Furthermore, the president ordered the suspension of the Import Tax Adjustment levy on specific vehicles. This action seeks to alleviate the burden on individuals and businesses involved in the importation and sale of such vehicles.
Dele Alake emphasized that these executive orders were implemented to mitigate the adverse effects of recent tax adjustments on businesses and households. President Tinubu is committed to addressing concerns related to multiple taxation, local and anti-business inhibitions, and is determined to review such issues in order to create a conducive environment for businesses to thrive.
Alake further assured Nigerians that the Tinubu administration will continue to implement friendly policies that stimulate economic growth. The president firmly stated that there will be no further tax increases without extensive and inclusive consultations, taking into account a comprehensive fiscal policy framework.
President Bola Tinubu’s executive orders mark a significant step towards alleviating the tax burden on Nigerian businesses and households. These measures reflect the administration’s commitment to fostering a conducive environment for economic growth and promoting the prosperity of the Nigerian people.
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