New Telegraph

Private Sector Demands More Waivers As Tinubu Suspends Taxes

Following the suspension of taxes by President Bola Tinubu-led government, the organized private sector has welcomed the new development, saying it shows that the Federal Government was sensitive to the challenges facing businesses and citizens of the country.

The private sector operators under the aegis of the Manufacturers Association of Nigeria, Lagos Chamber of Commerce and Industry, and Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture made this known in a statement issued on Thursday.

They, however, pointed out that the tax suspensions were inadequate to curb rising inflation and other macroeconomic headwinds threatening the survival of many local businesses.

They, therefore, asked President Tinubu to implement additional tax waivers and incentives in order to reduce the high cost of doing business, address rising inflation and tackle the various economic challenges affecting businesses.

New Telegraph had earlier reported that the President signed four Executive Orders, suspending the five per cent excise tax on telecommunication services and the excise duties escalation on locally manufactured.

The Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, announced the development while briefing State House correspondents at the Presidential Villa, Abuja.

According to him, the move is to ensure that the Act aligns with the 90-day notice period required by the National Tax Policy 2017.

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.

He also ordered the suspension of the newly introduced Green Tax through the Excise Tax of Single-Use Plastics, including plastic containers and bottles. Likewise, he suspended the Import Tax Adjustment levy on certain vehicles.

Alake explained that these orders were meant to reduce the negative impacts of the tax adjustments on businesses and households across the affected sectors.

However, he reiterated the President’s commitment to addressing complaints about multiple taxation and other related challenges facing business.

He noted that the Tinubu administration would continue to give requisite stimulus through friendly policies to allow businesses to flourish nationwide.

The President assured Nigerians that there would not be further tax raise without robust and broad consultations within a coherent fiscal policy framework.

Reacting to a question on whether the President’s action would affect the Petroleum Tax and if new taxes would be introduced, the Special Adviser on Revenue, Adedeji, said that the President’s intent is to lighten tax burdens, harmonise and manage existing taxes in the best interest of Nigerians.

“The pricing structure that you have for PMS today, all those have been included, there’s no new taxes that we’re bringing in.

“One of the key focuses of this administration is to harmonise our taxes, the way we collect it. Mr President actually wants to simplify and make it friendly to businesses, the way we operate taxes in Nigeria.

“As we know, when we talk about revenue management, it’s not only in tax collection, the starting point is our economic policy because our aim is not to tax poverty. Our aim is not to tax production. Our aim is to increase our productive activities, capacity to produce, then we can tax our consumption and that is the direction of our economic planning,” Adedeji explained.

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