In a bid to curb multiple taxations as complained by a cross-section of Nigerians and the business community, President Bola Tinubu has signed four Executive Orders, which include the suspension of the five per cent Excise Tax on telecommunication services as well as the Excise Duty escalation on locally manufactured products.
The President also suspended the 2023 Finance Act 2023 deferring the date of its commencement from 28th May, 2023 to 1st of September, 2023.
Some of the suspended taxes were issued through Executive Orders by former President Muhammadu Buhari at the twilight of his administration.
They include Corporate Income tax, Import duties, Export duties, Excise duties, Rents, Capital Gains tax, Personal Income tax, Value Added tax, Stamp duties, Property tax, Licenses, Motor Parking fee, Motor Vehicle fee, Withholding tax, Land tax, Market License fee, Road tax, Business Premises, dividend tax, NHIS levy, Advert fee, Regulation fees, the new NYSC levy.
The Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, disclosed this while briefing State House correspondents on Thursday at the Presidential Villa Abuja.
According to him, some of the tax policies are being implemented retroactively with their commencement dates, and in some instances, pre-dating the official publication of the relevant legal instruments backing them.
Alake had led the members of the administration’s Revenue Team to brief State House newsmen at the Presidential Villa, Abuja.
Others on the team were Special Adviser to the President on Revenue, Mr Zacc Adedeji; Ms Doris Aniettie, a member of the Presidential Advisory Council on Finance and other Related Matters; Adenike Laoye, from the Office of the Chief of Staff to the President
He said President Tinubu also 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 explained that this is to ensure adherence to the 90 days minimum advance notice for tax changes as contained in the 2017 National Tax Policy.
President Tinubu also 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 and also in line with the National Tax Policy.
He said: “The second one is the Customs, Excise Tariff (Variation) Amendment Order, 2023, which shifts the commencement date of the tax changes from March 27, 2023 to August 1, 2023 and also in line with the National Tax Policy.”
“The other Executive Order signed by the president suspends the 5% Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products.
“The last Executive Order also suspends the newly introduced Green Tax by way of Excise Tax on Single Use Plastics, including plastic containers and bottles.
“Tinubu also ordered the suspension of Import Tax Adjustment levy on certain vehicles.”
Alake explained that this is in the president’s commitment to creating a business-friendly environment.
He said: “As a listening leader, the President issued these orders to ameliorate the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors. His Excellency will not exacerbate the plight of Nigerians.”
According to him, President Tinubu’s intention is to listen to the concerns of the Nigerian people and alleviate the negative impacts of the tax adjustments, rather than exacerbate the challenges faced by the citizens.
He further explained that the decision is in fulfilment of President Tinubu’s promise to address business unfriendly fiscal policy measures and multiplicity of taxes.
He reiterated the President’s commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions.
He assured that the Tinubu administration will continue to give requisite stimulus by way of friendly policies to allow businesses to flourish in the country.
In his reaction, National President, NACCIMA, Dele Kelvin Oye, said: “We appreciate the administration’s commitment to ensuring that Nigerian businesses are not unduly burdened by unfavourable policies.
“We note that the tax changes were intended to raise revenue while addressing important public health and environmental concerns. However, the lack of adequate notice and clarity on the implementation of the changes has resulted in significant challenges for affected businesses, including rising costs, falling margins and capacity underutilization.
“We commend the decision by President Bola Ahmed Tinubu to sign executive orders deferring the commencement of the tax changes as contained in the Finance Act and Customs, Excise Tariff (Variation) Amendment Order. We also support the suspension of the 5% Excise Tax on telecommunication services, the Excise Duties escalation on locally manufactured products, the Green Tax on Single-Use Plastics, including plastic containers and bottles, and the Import Tax Adjustment levy on certain vehicles.
“We urge the Federal Government to continue to engage with stakeholders and implement policies that are business-friendly and promote sustainable economic growth. We believe that the private sector is essential to achieving the government’s goal of higher GDP growth and reduced unemployment rate through job creation.”