Tinubu signs 4 executive orders, suspends tax on telecoms, vehicles, others
Story from Vivian DANIEL, Abuja
In other to address worries raised by manufacturers and other stakeholders regarding recent tax changes, President Tinubu has signed three executive orders suspending major tax measures.
The action comes as a response to the need for clarity and adequate notice for tax adjustments, as specified in the 2017 National Tax Policy.
The President’s Special Adviser on Special Duties, Communications, and Strategy, Dele Alake, announced this at the Presidential Villa on Thursday, 6 July 2023.
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The first executive order signed by President Tinubu is the Finance Act (Effective Date Variation) Order, 2023. It defers the implementation of the changes outlined in the Act from May 23, 2023, to September 1, 2023, ensuring compliance with the stipulated 90-day advance notice for tax changes.
The second is the Customs Excise Tariff (Variation) Amendment Order, 2023, which also adjusts the commencement date of tax changes. Originally scheduled for March 27, 2023, the changes will now take effect from August 1, 2023, aligning with the National Tax Policy guidelines.
Furthermore, President Tinubu has issued an order suspending the 5% Excise Tax on telecommunication services, as well as the Excise Duties that have been escalating on locally manufactured products.
Alake said the decision echoes Tinubu’s commitment to fostering a business-friendly environment and alleviating the burdens faced by businesses and households in affected sectors.
Additionally, the President has also mandated a halt on the newly introduced Green Tax, an Excise Tax on Single-Use Plastics, including plastic containers and bottles.
Alake also said the Import Tax Adjustment levy on certain vehicles has been discontinued.
According to him, President Tinubu’s intent was to listen to the concerns of the Nigerian people and alleviate the negative impacts of the tax adjustments, rather than aggravate the challenges faced by citizens.