Tinubu suspends 5% excise tax on telecom services

Signs 4 orders amending Finance Act, others

In fulfillment of his promise to address business unfriendly fiscal policy measures and multiplicity of taxes, President Bola Tinubu has signed four Executive Orders, including suspending the 5% excise tax on telecom services.

The action  which aims to put Nigerians at the centre of governmnet policies was announced by Dele Alake, Special Adviser on Special Duties, Communications and Communications and Strategy,  at a press briefing in the presidential villa, Abuja, on Thursday.

The executive orders include the Finance Act (Effective Date Variation) Order, 2023, which has now deferred the commencement date of the changes contained in the Act from May 23, 2023 to September 1, 2023.

According to the presidential spokesman, this is to ensure adherence to the 90 days minimum advance notice for tax changes as contained in the 2017 National Tax Policy.

The second one is 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 and also in line with the National Tax Policy.

The other Executive Order signed by the president suspends the 5% Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products.

The last Executive Order also suspends the newly introduced Green Tax by way of Excise Tax on Single Use Plastics, including plastic containers and bottles.

Tinubu also ordered the suspension of Import Tax Adjustment levy on certain vehicles.

Alake explained that this is in the president’s commitment to creating a business-friendly environment.

He said “as a listening leader, the President issued these orders to ameliorate the negative impacts of the tax adjustments on businesses and choke hold on households across affected sectors.

“His Excellency will not exacerbate the plight of Nigerians.”