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Tinubu suspends Finance Act, halts 5% excise tax on telecoms
Business

Tinubu suspends Finance Act, halts 5% excise tax on telecoms

In a bid to curb multiple taxations as complained by a cross-section of Nigerians and the business community, President Bola Tinubu has signed four Executive Orders, which include the suspension

  • PublishedJuly 7, 2023

In a bid to curb multiple taxations as complained by a cross-section of Nigerians and the business community, President Bola Tinubu has signed four Executive Orders, which include the suspension of the five per cent Excise Tax on telecommunication services as well as the Excise Duty escalation on locally manufactured products.

The President also suspended the 2023 Finance Act 2023 deferring the date of its commencement from 28th May, 2023 to 1st of September, 2023.

Some of the suspended taxes were issued through Executive Orders by former President Muhammadu Buhari at the twilight of his administration.

They include Corporate Income tax, Import duties, Export duties, Excise duties, Rents, Capital Gains tax, Personal Income tax, Value Added tax, Stamp duties, Property tax, Licenses, Motor Parking fee, Motor Vehicle fee, Withholding tax, Land tax, Market License fee, Road tax, Business Premises, dividend tax, NHIS levy, Advert fee, Regulation fees, the new NYSC levy.

The Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, disclosed this while briefing State House correspondents on Thursday at the Presidential Villa Abuja.

According to him, some of the tax policies are being implemented retroactively with their commencement dates, and in some instances, pre-dating the official publication of the relevant legal instruments backing them.

Alake had led the members of the administration’s Revenue Team to brief State House newsmen at the Presidential Villa, Abuja.

Others on the team were Special Adviser to the President on Revenue, Mr Zacc Adedeji; Ms Doris Aniettie, a member of the Presidential Advisory Council on Finance and other Related Matters; Adenike Laoye, from the Office of the Chief of Staff to the President

He said President Tinubu also 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.
He explained that this is to ensure adherence to the 90 days minimum advance notice for tax changes as contained in the 2017 National Tax Policy.

President Tinubu also 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 and also in line with the National Tax Policy.

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