Tinubu Suspends 5% Telecoms Tax, Defers Finance Act To September 1

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Tinubu Suspends 5% Telecoms Tax, Defers Finance Act To September 1

President Bola Tinubu has signed four executive orders, including the suspension of the 5% excise tax on telecommunication services, as well as the excise duties escalation on locally manufactured products.

Dele Alake, special adviser on special duties, communications and strategy to the president, disclosed this on Thursday to state house correspondents.

Alake also said President Tinubu signed the Finance Act (Effective Date Variation) Order, 2023, which now defers the commencement date of the changes contained in the Act from May 23, 2023 to September 1, 2023.

He explained that this will ensure adherence to the 90 days minimum advance notice for tax changes as contained in the 2017 National Tax Policy.

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, in line with the National Tax Policy.

Alake added that the president also ordered the suspension of the newly introduced Green Tax on Single Use Plastics (SUPs), including plastic containers and bottles.

President Tinubu also ordered the suspension of Import Tax Adjustment levy on certain vehicles.

Alake said the president issued these orders to ameliorate the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors.

He reiterated the president’s commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions.

He assured that the Tinubu administration will continue to give requisite stimulus by way of friendly policies, to allow businesses to flourish in the country.

He said the president assures Nigerians that there will be no further tax raise without robust and wide consultations within the context of a coherent fiscal policy framework.