Tinubu suspends 5% telecoms tax, defers Finance Act to September 1

President Bola Ahmed Tinubu has signed four Executive Orders in fidelity to the pledge to put Nigerians at the centre of government policies and address business unfriendly fiscal policy measures and multiplicity of taxes.

 

The executive orders include the suspension of the 5% excise tax on telecommunication services, as well as the excise duties escalation on locally manufactured products.

 

Dele Alake, Special Adviser on special duties, communications and strategy to the president, said his principal signed the Finance Act (Effective Date Variation) Order, 2023, which now defers the commencement date of the changes contained in the Act from May 23, 2023 to September 1, 2023.

 

He said this will ensure adherence to the 90 days minimum advance notice for tax changes as contained in the 2017 National Tax Policy.

 

President Tinubu signed the Customs, Excise Tariff (Variation) Amendment Order, 2023, shifting the commencement date of the tax changes from March 27, 2023 to August 1, 2023, in line with the National Tax Policy. He also ordered the suspension of the newly introduced Green Tax on Single Use Plastics (SUPs), including plastic containers and bottles.

 

Tinubu also ordered the suspension of Import Tax Adjustment levy on certain vehicles.

 

Alake who reiterated the president’s commitment to reviewing complaints around multiple taxation, local and anti-business inhibitions, added that he issued these orders to ameliorate the negative impact of recent tax adjustments on businesses and the chokehold on households.

 

The President’s special adviser said;

 

“The President wishes to reiterate his commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions. The Federal government sees business owners, local and foreign investors as critical engines in its focus on achieving higher GDP growth and appreciable reduction in unemployment rate through job creation.

“The government will, therefore, continue to give requisite stimulus by way of friendly policies to allow businesses to flourish in the country. President Bola Tinubu wishes to assure Nigerians by whose mandate he is in power that there will not be further tax raise without robust and wife consultations undertaken within the context of a coherent fiscal policy framework.”