President Bola Ahmed Tinubu has taken a significant step to enhance manufacturing and improve the ease of doing business by signing four executive orders (EOs). These EOs aim to stimulate economic activities and alleviate hardships by suspending key taxes, according to presidential advisers.
The decision to introduce these EOs aligns with international best practices, which recommend providing a 90-day window for investors before implementing new taxes. The government officials emphasized that no new taxes would be imposed without robust consultations with stakeholders.
During a briefing at Aso Villa, Abuja, Mr. Dele Alake, the Special Adviser to the President on Special Duties, Communication, and Strategy, along with other members of the Presidential Revenue Team, shed light on the details of the EOs. The team also included Mr. Zacc Adedeji, Special Adviser to the President on Revenue, Ms. Doris Aniettie, a member of the Presidential Advisory Council on Finance, and Adenike Laoye from the Office of the Chief of Staff to the President.
The team explained that these EOs were introduced to ensure clarity and sufficient notice for tax adjustments, in line with the 2017 National Tax Policy. The first executive order, known as The Finance Act (Effective Date Variation) Order, 2023, defers the commencement date of the changes outlined in the Act from May 23, 2023, to September 1, 2023, in compliance with the minimum 90-day advance notice for tax changes.
Furthermore, The Customs, Excise Tariff (Variation) Amendment Order, 2023, shifts the start date of the tax changes from March 27, 2023, to August 1, 2023, adhering to the provisions of the National Tax Policy.
In addition, the President issued an order suspending the five percent excise tax on telecommunication services, as well as the escalation of excise duties on locally manufactured products.
These executive orders reflect the government's commitment to fostering a favorable business environment, promoting investment, and supporting local industries. By providing clarity and a consultation period, these measures aim to create stability and predictability for businesses and investors alike.
