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President Bola Ahmed Tinubu has taken significant steps to prioritize the well-being of Nigerians and address concerns related to business-unfriendly fiscal policies and excessive taxation. These actions came in the form of four Executive Orders signed by the President.
Mr Dele Alake, the Special Adviser to the President on Special Duties, Communication, and Strategy, shared this information during a briefing with State House reporters at the Presidential Villa in Abuja. He explained that these executive orders were designed to address the key issues raised by manufacturers and other stakeholders regarding recent tax changes.
The first Executive Order, called the Finance Act (Effective Date Variation) Order, 2023, defers the implementation of the changes outlined in the Act from May 23, 2023, to September 1, 2023. This deferral aims to ensure compliance with the 90-day minimum advance notice for tax changes, as stated in the 2017 National Tax Policy.
The second Executive Order, known as the Customs, Excise Tariff (Variation) Amendment Order, 2023, also postpones the implementation of tax changes from March 27, 2023, to August 1, 2023. This adjustment aligns with the National Tax Policy.
The President also issued an Order suspending the 5% Excise Tax on telecommunication services and the escalation of Excise Duties on locally manufactured products. Furthermore, the President ordered the suspension of the newly introduced Green Tax, which imposed an Excise Tax on Single Use Plastics, including plastic containers and bottles.
In addition, the Import Tax Adjustment levy on certain vehicles has been suspended as per the President's directives.
According to Alake, these orders were issued by President Tinubu to alleviate the adverse effects of the tax adjustments on businesses and households in the affected sectors. The President is determined not to exacerbate the challenges faced by Nigerians.
Alake emphasized that President Tinubu is committed to addressing concerns about multiple taxation and anti-business regulations. The Federal government recognizes the importance of business owners, both local and foreign investors, as crucial drivers of higher GDP growth and job creation, leading to a significant reduction in the unemployment rate.
The government will continue to implement favourable policies that stimulate business growth in the country. President Bola Tinubu assures Nigerians, who have entrusted him with their mandate, that any future tax increases will be preceded by extensive and meaningful consultations within a comprehensive fiscal policy framework.
Credit: Daily Trust
