President Tinubu Suspends 5% Excise Tax On Telecom Services

President Bola Tinubu signed four executive orders, including the removal of the 5 percent excise tax on telecommunication services and the excise duties escalation on locally manufactured products.

He also signed another executive order that suspended the Finance Act 2023 deferring the date of its commencement from May 28 to Sept. 1, this year.

Special Adviser to the President on Special Duties, Communications, and Strategy, Dele Alake disclosed on Thursday that the president also suspended the Import Tax Adjustment levy on certain vehicles.

Alake said during a briefing at the Presidential Villa that there is a 90-day notice period given to align with the National Tax Policy 2017.

"His Excellency will not exacerbate the plight of Nigerians," Alake said, PremiumTimes reported. "Indeed, the intentions behind upward adjustments of some of these taxes are quite noble. They were designed to raise revenue and address environmental and health issues."

He continued, "However, they have generated significant challenges for and elicited serious complaints amongst key stakeholders as well as in the business community."

"The last Executive Order also suspends the newly introduced Green Tax by way of Excise Tax on Single-Use Plastics, including plastic containers and bottles," Alake noted.

Alake explained that these suspension orders came as the president is committed to creating a business-friendly environment.

"The President wishes to reiterate his commitment to reviewing complaints about multiple taxation, and anti-business inhibitions," he explained. "The Federal Government sees business owners, and local and foreign investors as critical engines in its focus on achieving higher GDP growth and an appreciable reduction in the unemployment rate through job creation."

He added, "The government will, therefore, continue to give requisite stimulus by way of friendly policies to allow businesses to flourish in the country."

Alake also acknowledged the recent tax raise and assured that there won't be any "further tax raise without robust and wide consultations undertaken within the context of a coherent fiscal policy framework."

The president announced subsidy removal during his inauguration, held on May 29, and this led to a rise in petrol prices from N195 per litre to N600 per litre. Due to this, transport companies like Uber increased their fares to ensure that drivers can cover their fuel costs and deal with inflation.

Furthermore, the Tinubu-led government confirmed that a 7.5% VAT (Value Added Tax) on diesel has been implemented.

On top of it, the Point-of-Sale operators have also started meeting stakeholders in the country and agreed on increasing transaction charges across Lagos, Ogun, and Edo states. The National Public Relations Officer, Association of Mobile Money and Bank Agents in Nigeria, Oluwasegun Elegbede disclosed the new price list earlier this week.