In order to address concerns about multiple taxation raised by various individuals and the business community, President Bola Tinubu has signed four Executive Orders. These orders include the suspension of the five percent Excise Tax on telecommunication services and the escalation of excise duties on locally manufactured products. Some of the taxes that have been suspended were previously issued through an Executive Order by former President Muhammadu Buhari during the final days of his administration.
Dele Alake, the Special Adviser to the President on Special Duties, Communications, and Strategy, disclosed this information during a briefing with State House correspondents at the Presidential Villa in Abuja.
As part of these orders, President Tinubu also signed the Finance Act (Effective Date Variation) Order, 2023, which defers the commencement date of the changes outlined in the Act from May 23, 2023, to September 1, 2023. This adjustment is in line with the 90-day minimum advance notice for tax changes specified in the 2017 National Tax Policy.
Furthermore, President Tinubu signed The Customs, Excise Tariff (Variation) Amendment Order, 2023, which shifts the start date of the tax changes from March 27, 2023, to August 1, 2023, aligning it with the National Tax Policy.
Alake emphasized that President Tinubu also ordered the suspension of the recently introduced Green Tax on Single Use Plastics (SUPs), which includes plastic containers and bottles. Additionally, the President suspended the Import Tax Adjustment levy on certain vehicles.
These orders were issued by the President to alleviate the negative impacts of the tax adjustments on businesses and households across affected sectors. Alake reiterated the President’s commitment to addressing complaints about multiple taxation and anti-business obstacles. He assured that the Tinubu administration will continue to implement friendly policies that stimulate business growth in the country.
Alake stated that the President assured Nigerians that there will be no further tax increases without robust and wide consultations conducted within the framework of a coherent fiscal policy.
In conclusion, President Bola Tinubu wishes to assure Nigerians, whose mandate he holds, that there will be no additional tax increases without extensive consultations conducted within the context of a well-defined fiscal policy framework. The Federal Government recognizes business owners, as well as local and foreign investors, as crucial drivers of higher GDP growth and significant reduction in unemployment through job creation. Therefore, the government will continue to implement supportive policies to foster business growth in the country.
