President Bola Tinubu has issued three executive orders postponing significant tax measures in an effort to allay concerns expressed by industry and other stakeholders about recent tax adjustments.
The action is a reaction to the 2017 National Tax Policy’s requirements for proper notification and transparency about tax modifications.
Dele Alake, the Special Adviser to the President on Special Duties, Communications, and Strategy, made the declaration on Thursday at the Presidential Villa.
The Finance Act (Effective Date Variation) Order, 2023, was the first executive order that President Tinubu signed. It delays the implementation of the Act’s modifications from May 23, 2023, to September 1, 2023, guaranteeing that the required 90-day prior notice for tax adjustments would be given.
The start date of tax modifications is also adjusted by the second order, the Customs Excise Tariff (Variation) Amendment Order, 2023. The modifications, which were supposed to go into effect on March 27, 2023, will instead start on August 1, 2023, in accordance with the National Tax Policy standards.
Dele Alake, the Special Adviser to the President on Special Duties, Communications, and Strategy, made the declaration on Thursday at the Presidential Villa.
The Finance Act (Effective Date Variation) Order, 2023, was the first executive order that President Tinubu signed. It delays the implementation of the Act’s modifications from May 23, 2023, to September 1, 2023, guaranteeing that the required 90-day prior notice for tax adjustments would be given.
The start date of tax modifications is also adjusted by the second order, the Customs Excise Tariff (Variation) Amendment Order, 2023. The modifications, which were supposed to go into effect on March 27, 2023, will instead start on August 1, 2023, in accordance with the National Tax Policy standards.
The 5% Excise Tax on Telecommunication Services and the Excise Duty Escalation on Locally Manufactured Goods have also been suspended by a directive from President Tinubu.
Alake claimed that Tinubu’s choice demonstrates his dedication to promoting a business-friendly climate and easing the constraints on companies and people in the impacted areas.
Along with these suspensions, the President also mandated the cancellation of the recently enacted Green Tax, an excise tax on single-use plastics such as bottles and containers.
Alake also reported the suspension of the Import Tax Adjustment levy on specific autos.
He claimed that rather than making matters worse for Nigerians, President Tinubu wanted to pay attention to their worries and lessen the detrimental effects of the tax modifications.