Tinubu signs executive orders, suspends 5% excise tax on telecoms, others

Four executive orders that President Bola Ahmed Tinubu has put into law aim to reduce the nation’s unfair taxing practises. Dele Alake, the president’s special adviser for special duties, communication, and strategy, revealed the policy direction on Thursday during a discussion with State House reporters.

The suspension of the 5% excise tax on telecommunication services and the increase in excise duty on domestically produced goods are two of President Tinubu’s most significant executive orders.

Alake further said that the Finance Act (Effective Date Variation) Order, 2023, which delays the start date of the modifications included in the Act from May 23, 2023, to September 1, 2023, was signed by President Tinubu. He said that by doing this, the 2017 National Tax Policy’s need for a minimum 90-day prior notification for tax changes will be upheld.

The Customs Excise Tariff (Variation) Amendment Order, 2023 was also issued by President Tinubu in compliance with the National Tax Policy, delaying the start of the tax revisions from March 27, 2023, to August 1, 2023.

The Excise Tax on Single-Use Plastics, which includes plastic bottles and containers, as well as the Import Tax Adjustment Levy, were both postponed by the president in addition.

In order to relieve financial pressures, Tinubu also suspended the Import Tax Adjustment Levy on a select number of automobiles. Alake emphasised that the president’s main motivation for making these instructions was to lessen the consequences of recent tax changes.