President Bola Tinubu has taken action by signing three executive orders to suspend major tax measures.
The President’s actions have been prompted by the necessity for clarity and adequate notice for tax adjustments, as outlined in the 2017 National Tax Policy.
The announcement was made by the President’s Special Adviser on Special Duties, Communications, and Strategy, Dele Alake, at the Presidential Villa on Thursday. The executive orders signify President Tinubu’s commitment to addressing the concerns raised by various sectors affected by the tax changes.
The first executive order, known as the Finance Act (Effective Date Variation) Order, 2023, effectively postpones the implementation of the changes specified in the Act.
Originally set to take effect from May 23, 2023, the changes will now be implemented on September 1, 2023, aligning with the stipulated 90-day advance notice requirement for tax adjustments.
Similarly, the second order, the Customs Excise Tariff (Variation) Amendment Order, 2023, alters the commencement date of tax changes. Initially scheduled for March 27, 2023, these changes will now come into effect on August 1, 2023, in accordance with the guidelines laid out in the National Tax Policy.
Also, President Tinubu has issued an order suspending the 5% Excise Tax on telecommunication services, as well as the Excise Duties escalation on locally manufactured products.
In a further effort to alleviate the impact of tax adjustments, President Tinubu has also halted the newly introduced Green Tax, an Excise Tax on Single Use Plastics, which includes plastic containers and bottles.
Furthermore, the Import Tax Adjustment levy on certain vehicles has been suspended, reflecting the President’s responsiveness to the concerns of the Nigerian people and his determination to alleviate the negative impacts of the tax adjustments.