In a move to address concerns raised by manufacturers and stakeholders, President Bola Tinubu has signed four Executive Orders. One of these orders suspends the 5% Excise Tax on telecommunication services and the Excise Duties escalation on locally manufactured products. The suspension aims to alleviate the negative impact of these tax changes on businesses and households.
Additionally, President Tinubu signed the Finance Act (Effective Date Variation) Order, 2023, which defers the commencement date of the Act’s changes from May 23, 2023, to September 1, 2023, ensuring adherence to the 90-day minimum advance notice for tax changes as stipulated in the 2017 National Tax Policy. The Customs, Excise Tariff (Variation) Amendment Order, 2023, also shifts the commencement date of tax changes from March 27, 2023, to August 1, 2023, aligning with the National Tax Policy.
Furthermore, the President has suspended the newly introduced Green Tax on Single Use Plastics (SUPs), including plastic containers and bottles, as well as the Import Tax Adjustment levy on certain vehicles. These measures demonstrate President Tinubu’s commitment to reviewing complaints about multiple taxation and anti-business inhibitions, ensuring a coherent fiscal policy framework through wide consultations.
The Tinubu administration aims to provide a favorable business environment through friendly policies, stimulating business growth and supporting the flourishing of enterprises in Nigeria. The President has assured Nigerians that there will be no further tax increases without robust and extensive consultations within the established fiscal policy framework.