President Bola Tinubu has signed four Executive Orders to curb multiple taxes, including the suspension of the 5% Excise Tax on telecommunication services and the escalation of Excise Duty on locally manufactured products. The 2023 Finance Act has also been suspended, deferring its commencement from May 28th to September 1st, 2023.
Some of the suspended taxes were issued during former President Muhammadu Buhari‘s administration. The Special Adviser to the President on Special Duties, Communications, and Strategy, Dele Alake, revealed that some tax policies are being implemented retroactively to their commencement dates, predating the official publication of relevant legal instruments. The Finance Act (Effective Date Variation) Order, 2023, defers the commencement date of the changes from May 23, 2023, to September 1, 2023, to ensure adherence to the 90-day minimum advance notice for tax changes. The Customs and Excise Tariff (Variation) Amendment Order, 2023, also shifts the commencement date of tax changes from March 27, 2023, to August 1, 2023, in line with the National Tax Policy.
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President Tinubu has issued several executive orders to address tax changes and create a business-friendly environment. These include shifting the commencement date of the Customs, Excise Tariff (Variation) Amendment Order, suspending the 5% Excise Tax on telecommunication services, escalating Excise Duties on locally manufactured products, suspending Green Tax on Single-Use Plastics, and suspending the Import Tax Adjustment Levy on certain vehicles. Alake emphasised that the President intends to listen to Nigerian concerns and alleviate the negative impacts of tax adjustments rather than exacerbate the challenges faced by citizens.
President Bola Tinubu reiterated his commitment to reviewing complaints about multiple taxes, and local and anti-business inhibitions, and ensuring the Tinubu administration provides friendly policies to support businesses. He assured Nigerians that further tax increases would not occur without consultations within a coherent fiscal policy framework. Tinubu cited the 2017 National Tax Policy, which required a minimum 90-day notice period for tax changes, but the Finance Act 2023 and Customs and Excise Tariff Order 2023 did not provide this notice period, putting businesses in violation of the new tax regime.
