Nigeria’s President Bola Tinubu has ordered the suspension of a newly introduced 10% tax on single-use plastics and excise duty on some locally manufactured products to reduce business costs in Africa’s biggest economy, his spokesman said on Thursday.
Nigeria is one of the biggest plastic polluters on the continent, contributing some 2.5 million tonnes of plastic waste annually, some of which ends up in the sea, official data show.
Dele Alake, Special Adviser on special duties, communications and strategy to the president, said his principal 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.
Also read: Fuel subsidy: SERAP asks Tinubu to spend N400b savings on suffering Nigerians
He said this will ensure adherence to the 90 days minimum advance notice for tax changes as contained in the 2017 National Tax Policy.
President Tinubu 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 on Single Use Plastics (SUPs), including plastic containers and bottles.
Tinubu also ordered the suspension of Import Tax Adjustment levy on certain vehicles.
The orders also suspended implementation of a 5% telecoms tax first mooted by the previous government and stopped an increase in car import duty and excise duty on selected goods manufactured locally.
Already, the nation’s telecommunications sector has attracted both local and foreign direct investments, FDI, to the tune of $75.6 billion as of 2021, Executive Vice Chairman of the Nigerian Communications Commission, NCC, Prof. Umar Danbatta, said.
Alake who reiterated the president’s commitment to reviewing complaints around multiple taxation, local and anti-business inhibitions, added that he issued these orders to ameliorate the negative impact of recent tax adjustments on businesses and the chokehold on households.
The President’s special adviser said; “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.’’
According to him, “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.”
Tinubu, who took office in May 2023, has embarked on Nigeria’s boldest reform agenda in decades, including the removal of a popular petrol subsidy and restrictions on foreign exchange trading, as he seeks to boost sluggish growth.
There would be no further tax rises without wider consultations, Alake said, adding that Tinubu would pursue business-friendly policies.
Minimise the cost of their goods or services- Sani
Meanwhile, Shehu Sani, a former Senator for Kaduna Central, has reacted in his verified Twitter page as Tinubu suspended 5% tax on telecom services, import tax on vehicles, and others.
Media reported that that President Bola Tinubu has suspended the newly introduced Green Tax by way of Excise Tax on Single-Use Plastics, including plastic containers and bottles.
President Muhammadu Buhari also signed an Executive Order suspending the 5% Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products.
Reacting to the report, Sani took to his microblogging, Twitter to say abolishing the tax tyrannies of the former president Buhari administration was commendable.
However, the outspoken activist enjoined businesses that benefited from the suspension to minimise the cost of their goods or services.
The former Senator tweeted, “Abolishing the Tax tyrannies of the Buhari regime is commendable. Businesses that benefited from this suspension must reduce the cost of their goods or services.”
