Nigeria: President Tinubu Signs Executive Orders, Suspends 5% Excise Tax on Telecoms and Other Measures

President Bola Tinubu has signed four Executive Orders, including the suspension of the five per cent Excise Tax on telecommunication services and the escalation of Excise Duties on locally manufactured products.

One of the signed orders is the Finance Act (Effective Date Variation) Order, 2023, which defers the implementation of changes in the Act from May 23, 2023, to September 1, 2023. This adjustment aligns with the 90-day notice period required by the National Tax Policy 2017.

Dele Alake, the Special Adviser to the President on Special Duties, Communications, and Strategy, announced this during a briefing with State House Correspondents at the Presidential Villa, Abuja, on Thursday (July 6, 2023).

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

Alake further stated that the President has suspended the newly introduced Green Tax, which imposed an Excise Tax on Single Use Plastics, including plastic containers and bottles. Additionally, the Import Tax Adjustment levy on certain vehicles has been suspended.

These executive orders aim to alleviate the adverse effects of the tax adjustments on businesses and reduce the burden on households in the affected sectors.

However, Alake emphasized the President’s commitment to addressing concerns about multiple taxation, local regulations, and barriers to business.

The administration of President Tinubu will continue to implement friendly policies and provide necessary stimulus to foster nationwide business growth.

The President assured Nigerians that there will be no further tax increases without comprehensive and extensive consultations within the framework of a coherent fiscal policy.

President Tinubu’s interventions also include the suspension of the five per cent Excise Tax on telecommunication services and the excise duty on locally produced products. Executive Order 4 suspends the newly introduced Green Tax on Single Use Plastics, as well as the Import Tax Adjustment levy on certain vehicles.