Tinubu suspends important tax measures to alleviate hardship.

 

President Bola Ahmed Tinubu took a significant step yesterday to bolster manufacturing and improve the ease of doing business by signing four executive orders (EOs). These EOs, aimed at stimulating economic activities and reducing hardship, entail the suspension of certain key taxes, according to presidential advisers.

The decision to implement the EOs was influenced by the international best practice of granting investors a 90-day window before introducing new taxes. This approach ensures a respectful and consultative process with stakeholders, as emphasized by officials. The Federal Government is committed to engaging in thorough consultations before implementing any tax increases.

During a briefing at Aso Villa, Abuja, Mr. Dele Alake, the Special Adviser to the President on Special Duties, Communication, and Strategy, along with other members of the Presidential Revenue Team, shed light on the details of the new EOs. The team included Mr. Zacc Adedeji, the Special Adviser to the President on Revenue; Ms. Doris Aniettie, a member of the Presidential Advisory Council on Finance and other Related Matters, and Adenike Laoye from the Office of the Chief of Staff to the President.

The primary objective of these executive orders is to ensure clarity and sufficient notice for tax adjustments, as outlined in the 2017 National Tax Policy. The first executive order, named The Finance Act (Effective Date Variation) Order, 2023, defers the implementation of changes in the Act from May 23, 2023, to September 1, 2023. This modification aligns with the requirement of a minimum 90-day advance notice for tax changes.

The second order, The Customs, Excise Tariff (Variation) Amendment Order, 2023, also pushes the commencement date of tax changes from March 27, 2023, to August 1, 2023, in accordance with the National Tax Policy.

Lastly, Mr. Alake announced that the President issued an Order to suspend the five percent excise tax on telecommunication services and the escalation of excise duties on locally manufactured products.

These executive orders demonstrate President Tinubu's commitment to facilitating a conducive environment for businesses, encouraging investment, and ensuring effective tax policies. The suspension of certain taxes will provide relief to businesses and foster economic growth in Nigeria.