Breaking News: Tinubu Suspends Finance Act, Customs Tariff, and Telecom Tax

In a bid to address concerns raised by manufacturers and other stakeholders regarding recent tax changes, President Bola Tinubu has signed three executive orders suspending major tax measures.

The move comes as a response to the need for clarity and adequate notice for tax adjustments, as specified in the 2017 National Tax Policy.

The President’s Special Adviser on Special Duties, Communications, and Strategy, Dele Alake, made the announcement at the Presidential Villa on Thursday.

The first executive order signed by President Tinubu was the Finance Act (Effective Date Variation) Order, 2023. It defers the implementation of the changes outlined in the Act from May 23, 2023, to September 1, 2023, ensuring compliance with the stipulated 90-day advance notice for tax changes.

The second order, the Customs Excise Tariff (Variation) Amendment Order, 2023, also adjusts the commencement date of tax changes. Originally scheduled for March 27, 2023, the changes will now take effect from August 1, 2023, aligning with the National Tax Policy guidelines.

Furthermore, President Tinubu has issued an order suspending the 5% Excise Tax on telecommunication services, as well as the Excise Duties escalation on locally manufactured products.

Alake said the decision reflects Tinubu’s commitment to fostering a business-friendly environment and alleviating the burdens faced by businesses and households in affected sectors.

In addition to these suspensions, the President has also ordered the halt of the newly introduced Green Tax, an Excise Tax on Single Use Plastics, including plastic containers and bottles.

Alake also said the Import Tax Adjustment levy on certain vehicles has been suspended.

According to him, President Tinubu’s intention was to listen to the concerns of the Nigerian people and alleviate the negative impacts of the tax adjustments, rather than exacerbate the challenges faced by citizens.