Tinubu suspends key tax measures, issues four executive orders

To alleviate tax burdens on Nigerians and their businesses based on some concerns raised by manufacturers and other stakeholders, President Bola Tinubu has signed four executive orders suspending some taxes.

Special Adviser to the President on Special Duties, Communication and Strategy, Dele Alake, who led members of the administration’s Revenue Team to brief State House reporters at the Presidential Villa, Abuja, disclosed this.

Others on the team were Special Adviser to the President on Revenue Zaccheus Adedeji; Ms Doris Aniettie, a member of the Presidential Advisory Council on Finance and other Related Matters as well as Adenike Laoye from the Office of the Chief of Staff to the President

The team said the move became necessary as a response to the need for clarity and adequate notice for tax adjustments as specified in the 2017 National Tax Policy.

According to Alake, the first executive order is The Finance Act (Effective Date Variation) Order, 2023, which has now deferred the commencement date of the changes contained in the Act from May 23, 2023 to September 1, 2023 to ensure adherence to the 90 days minimum advance notice for tax changes as contained in the 2017 National Tax Policy.

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

Alake said the President has given an Order suspending the 5% Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products.

He added the President also ordered the suspension of the newly introduced Green Tax by way of Excise Tax on Single Use Plastics, including plastic containers and bottles.

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He informed the President has ordered the suspension of Import Tax Adjustment levy on certain vehicles.

According to him, President Tinubu’s intention is to listen to the concerns of Nigerians and alleviate the negative impacts of the tax adjustments, rather than exacerbate the challenges faced by citizens.

According to him, some of the problems identified with the tax changes include the 2017 National Tax Policy approved by the President Muhammadu Buhari administration, prescribing a minimum of 90 days notice from government to tax-payers before any tax changes can take effect.

Reacting to a question on whether the President’s action would affect the Petroleum Tax and if new taxes would be introduced, the Special Adviser on Revenue, Adedeji, said that the intent of the President was to lighten tax burdens, harmonise and manage already existing taxes in the best interest of Nigerians.

“As you rightly said that there’s plan or possibly proposal for Petroleum Tax, if you look at the current price templates, that has already been included, so this suspension has nothing to do with that. So the pricing structure that you have for PMS today, all those have been included, there’s no new taxes that we’re bringing in.

“Our aim is not to tax production. Our aim is to increase our productive activities, capacity to produce, then we can tax our consumption and that is the direction of our economic planning and then we want to increase the trust that we have in the government.

If you have observe what has happened in the last months that we’ve been here, we’ve kept our words, part of what we are doing today, just to increase this trust that we’re here to do what’s best for the country.”