Suspends 5% Excise Duty on Imported Vehicles, Tax on telecommunication services

Special Adviser to President Bola Ahmed Tinubu on Special Duties, Communications and Strategy Mr. Dele Alake, on Thursday, described as “mere fabrications”, reports in the media on the much-anticipated ministerial list of President Bola Tinubu’s cabinet.

Responding to a question on the speculated list out in the media, Mr. Alake told State House Correspondents, that President Tinubu on whose table the buck stops, would make the list of nominees known when he is good and ready.

His words: “About the ministerial list, the simple truth is that, you know, this is an executive presidency, we’re not running a parliamentary system. So the President, the bucks stops on his table, and he decides when it’s fit and proper for him to make his cabinet list.

“So, we are not unaware of all the speculations, and innuendos and rumours, all kinds of things in the media. Now, I as a media man, I chuckled to myself that people just want to sell, so they just fabricate. I can tell you all of those things you’ve been reading in the media are mere fabrications. There is no iota of truth in all of those things. When the President is good and ready, you will be the first to know about his intentions.”

Also on Thursday, the President signed four Executive Orders one of which suspends the “5% Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products.” A statement released by Mr. Alake, said that President Tinubu also ordered the suspension of the Import Tax Adjustment levy on certain vehicles.

The statement noted that the President issued these orders to alleviate the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors. “His Excellency will not exacerbate the plight of Nigerians,” he said.

President Bola Tinubu signed the four Executive Orders one of which is the suspension of the import tax adjustment levy in certain vehicles. The Special Adviser on Special Duties, Communications and Strategy, Dele Alake announced this on Thursday while addressing State House Correspondents at the Presidential Villa Abuja.

Alake reiterated the President’s commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions. He assured that the Tinubu administration will continue to give requisite stimulus by way of friendly policies to allow businesses to flourish in the country. (Continue reading on next slide)

The statement noted that the current Administration has since noticed that some of the tax policies are being implemented retroactively with their commencement dates, in some instances, pre-dating the official publication of the relevant legal instruments backing the policies. This lacuna has created some challenges in implementation, Mr Alake said.

“Indeed, the intentions behind upward adjustments of some of these taxes are quite noble. They were designed to raise revenue as well as address environmental and health issues of concern.

“However, they have generated some significant challenges for, and elicited serious complaints amongst key stakeholders as well as in the business community,” the statement said.

The statement said based on the new executive orders, 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 statement said.

In addition, the president signed 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,” it said.