Tinubu signs executive orders, suspends 5% excise tax on telecoms, others

Tinubu signs executive orders, suspends 5% excise tax on telecoms, others

President Bola Tinubu has signed four Executive Orders one of which is the suspension of the five per cent Excise Tax on telecommunication services and the Excise Duties escalation on locally manufactured products.

Among them is the The Finance Act (Effective Date Variation) Order, 2023, which defers the commencement date of the changes contained in the Act from May 23, 2023, to September 1, 2023.

Special Adviser to the president on Special Duties, Communications and Strategy Dele Alake, annouced this on Thursday while briefing State House Correspondents at the Presidential Villa, Abuja.

Alake said this is to ensure that the act aligns with the 90-day notice period required by the National Tax Policy 2017.

President Tinubu also signed The Customs, Excise Tariff (Variation) Amendment Order, 2023, shifting 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 added that the President ordered the suspension of the newly introduced Green Tax by way of Excise Tax on Single Use Plastics, including plastic containers and bottles.

He also suspended the Import Tax Adjustment levy on certain vehicles.

The Presidential Spokesman explained that the these orders are meant to ameliorate the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors.

However, he reiterated the President’s commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions.

Alake noted that President Tinubu administration will, therefore, continue to give requisite stimulus by way of friendly policies to allow businesses to flourish nationwide.

The President assured Nigerians that there will not be further tax raise without a robust and wide consultations undertaken within the context of a coherent fiscal policy framework.

President Tinubu’s interventions also include the suspension of the five per cent Excise Tax on telecommunication services and excise duty on locally produced products. While Executive Order 4 is the suspension of the newly introduced Green Tax on Single Use Plastics and the Import Tax Adjustment levy on certain vehicles.

Details later.

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