President Bola Tinubu has signed four Executive Orders, including the suspension of the five per cent Excise Tax on telecommunication services and the Excise Duties escalation on locally manufactured products.
The announcement was made by Dele Alake, the Special Adviser to the President on Special Duties, Communications, and Strategy, during a press briefing at the State House in Abuja.
One of the Executive Orders signed by President Tinubu is the Finance Act (Effective Date Variation) Order, 2023.
This order defers the commencement date of the changes contained in the Act from May 23, 2023, to September 1, 2023.
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The decision was made to ensure compliance with the 90-day minimum advance notice for tax changes, as stipulated in the 2017 National Tax Policy.
Another order signed by President Tinubu is The Customs, Excise Tariff (Variation) Amendment Order, 2023.
This order shifts the commencement date of the tax changes from March 27, 2023, to August 1, 2023, in line with the National Tax Policy.
Furthermore, President Tinubu ordered the suspension of the newly introduced Green Tax, which imposed Excise Tax on Single-Use Plastics, including plastic containers and bottles. Additionally, the Import Tax Adjustment levy on certain vehicles has also been suspended.
Explaining the rationale behind these orders, Dele Alake emphasized that the President’s intention is to mitigate the adverse effects of the tax adjustments on businesses and households in affected sectors.
He further reiterated President Tinubu’s commitment to addressing concerns about multiple taxation, local inhibitions, and anti-business policies.
Alake assured the public that President Tinubu’s administration will continue to implement business-friendly policies and provide necessary stimulus to foster the growth of businesses across the country.
President Tinubu also pledged that any future tax increases would only be implemented after thorough and extensive consultations, within the framework of a coherent fiscal policy.