Tinubu orders suspension of 5% excise tax on Telco services

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President Bola Tinubu has ordered the suspension of 5 per cent excise tax on Telecommunication services in the country as well as the Excise Duties escalation on locally manufactured products.

Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, made this known on Thursday while speaking with newsmen at the State House, Abuja.

He said this was among the four Executive Orders deferring and suspending the commencement of certain taxes paid by companies in the country.

Alake further noted that the move was in line with President Tinubu’s pledge during his inauguration on May 29, 2023, to address business unfriendly fiscal policy measures and multiplicity of taxes and in line with the president’s promise to put Nigerians at the centre of government policies.

“The Finance Act (Effective Date Variation) Order, 2023, has now deferred the commencement date of the changes contained in the Act from May 23, 2023 to September 1, 2023. This is to ensure adherence to the 90 days minimum advance notice for tax changes as contained in the 2017 National Tax Policy.

“The Customs, Excise Tariff (Variation) Amendment Order, 2023. This has also shifted the commencement date of the tax changes from March 27, 2023 to August 1, 2023 and also in line with the National Tax Policy.

“Further to his commitment to creating a business-friendly environment, the President has ordered the suspension of the newly introduced Green Tax by way of Excise Tax on Single Use Plastics, including plastic containers and bottles. In addition, the President has ordered the suspension of Import Tax Adjustment levy on certain vehicles,” Alake stated.