FG suspends implementation of 5% telecoms tax, Finance Act deferred to September 1

 Nigeria's President, Bola Tinubu has suspended the implementation of the 5% excise tax on telecommunication services, and also the excise duties escalation on locally manufactured products.

This is a fallout of four Executive Orders the president signed as part of his government's pledge to put Nigerians at the centre of government policies and address business unfriendly fiscal policy measures and multiplicity of taxes.

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The Special Adviser on special duties, communications and strategy to the president, Dele Alake in a statement said Tinubu signed the Finance Act (Effective Date Variation) Order, 2023, deferring the commencement date of the changes contained in the Act from May 23, 2023 to September 1, 2023.

Alake said in adhering 2017 National Tax Policy, the move will ensure adherence to the 90 days minimum advance notice for tax changes.

President Tinubu also signed the Customs, Excise Tariff (Variation) Amendment Order, 2023, which will l shift the commencement date of the tax changes from March 27, 2023 to August 1, 2023, in line with the National Tax Policy.

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 while reiterating the president’s commitment to reviewing complaints around multiple taxation, local and anti-business inhibitions, noted that Tinubu issued these orders to ameliorate the negative impact of recent tax adjustments on businesses and the chokehold on households.

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

“The government will, therefore, continue to give requisite stimulus by way of friendly policies to allow businesses to flourish in the country. President Bola Tinubu wishes to assure Nigerians by whose mandate he is in power that there will not be further tax raise without robust and wife consultations undertaken within the context of a coherent fiscal policy framework.”