In a significant move to support the economy, President Bola Tinubu has signed an executive order suspending the five per cent excise tax on telecommunication services and the excise duties escalation on locally manufactured products. The announcement was made by Tinubu’s spokesperson, Dele Alake, during a press briefing at the State House in Abuja on Thursday.
Additionally, the President signed the Finance Act (Effective Date Variation) Order, 2023, which postpones the implementation date of the changes outlined in the Act from May 23, 2023, to September 1, 2023. This decision aligns with the 90-day minimum advance notice for tax changes as stated in the 2017 National Tax Policy.
The Customs, Excise Tariff (Variation) Amendment Order, 2023 was also signed by President Tinubu, shifting the start date of the tax changes from Monday, March 27, to Tuesday, August 1, 2023, in accordance with the National Tax Policy.
Furthermore, President Tinubu ordered the suspension of the newly introduced green tax, specifically the excise tax on single-use plastics such as containers and bottles. The import tax adjustment levy on certain vehicles has also been suspended, aiming to mitigate the negative impacts of the tax adjustments on businesses and households in affected sectors.
Dele Alake emphasized that these orders reflect President Tinubu’s commitment to addressing concerns about multiple taxation, local business constraints, and anti-business regulations. The President’s administration remains dedicated to fostering a favorable environment for businesses to thrive in Nigeria through friendly policies and necessary stimulus.
President Tinubu assured Nigerians that there will be no further tax increases unless comprehensive and inclusive consultations are conducted within the framework of a coherent fiscal policy. This commitment underlines the President’s determination to prioritize the welfare of businesses and households across the country.