President Bola Tinubu has taken steps to address the issue of multiple taxation in Nigeria by signing 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 these taxes were originally introduced through an Executive Order by former President Muhammadu Buhari during his final days in office.
Dele Alake, the Special Adviser to the President on Special Duties, Communications, and Strategy, announced the suspension of these taxes.
He provided this information during a briefing with State House correspondents at the Presidential Villa in Abuja.
Additionally, Tinubu signed the Finance Act (Effective Date Variation) Order, 2023. This order defers the commencement date of the changes outlined in the Act from May 23, 2023, to September 1, 2023.
The purpose of this delay is to ensure compliance with the 90-day minimum advance notice for tax changes, as stipulated in the 2017 National Tax Policy.
Furthermore, the President signed The Customs, Excise Tariff (Variation) Amendment Order, 2023. This order shifts the commencement date of tax changes from March 27, 2023, to August 1, 2023, in accordance with the National Tax Policy.
Tinubu also suspended the newly introduced Green Tax on Single Use Plastics (SUPs), which includes plastic containers and bottles. Moreover, the Import Tax Adjustment levy on certain vehicles was also suspended.
These orders were issued by the President to alleviate the negative impacts of the tax adjustments on businesses and households in various sectors.
Tinubu remains committed to addressing concerns related to multiple taxation and anti-business practices.
The administration will implement friendly policies to support business growth and will not impose further tax increases without extensive consultations and a coherent fiscal policy framework.
Tinubu recognizes the importance of business owners and local as well as foreign investors in achieving higher GDP growth and reducing the unemployment rate through job creation. The government will continue to provide the necessary support to enable businesses to thrive in Nigeria.