Tinubu Suspends 5% Telecoms Tax, Defers Finance Act

President Bola Ahmed Tinubu has just signed four Executive Orders in fulfilment of his pledge to put Nigerians at the centre of government policies and address issue of the multiplicity of taxes.

Mr Dele Alake, the Special Adviser to the President on Special Duties, Communication and Strategy, disclosed this on Thursday while briefing State House correspondents at the Presidential Villa, Abuja.

Alake said the Executive Orders were presidential interventions to address critical concerns of manufacturers and other stakeholders regarding some recent tax changes.

He explained that 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 one 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.

The third order, Alake said, is the one suspending the 5% Excise Tax on telecommunication services and the Excise Duties escalation on locally manufactured products. While the fourth is the suspension of the newly introduced Green Tax by way of Excise Tax on Single-Use Plastics, including plastic containers and bottles.

He added that the President had ordered the suspension of Import Tax Adjustment levy on certain vehicles, adding that Tinubu issued these orders to ameliorate the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors.

He said the President reiterated his commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions.