President Bola Tinubu has signed three executive orders aimed at addressing concerns raised by manufacturers and other stakeholders regarding recent tax changes. The move comes in response to the need for clarity and adequate notice for tax adjustments, as outlined in the 2017 National Tax Policy.
The announcement was made by Dele Alake, the President’s Special Adviser on Special Duties, Communications, and Strategy, at the Presidential Villa on Thursday.
The first executive order signed by President Tinubu is the Finance Act (Effective Date Variation) Order, 2023. This order defers the implementation of the changes outlined in the Act from May 23, 2023, to September 1, 2023. The purpose of this deferral is to ensure compliance with the stipulated 90-day advance notice for tax changes, providing manufacturers and other stakeholders with the necessary time to prepare.
The second order, known as 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. This adjustment aligns with the guidelines set forth in the National Tax Policy, further facilitating a smoother transition for businesses.
In addition, 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. This suspension provides temporary relief to the affected industries and allows for a more comprehensive review of the impact and implications of these tax measures.
The executive orders signed by President Tinubu reflect the government’s commitment to addressing the concerns raised by manufacturers and stakeholders regarding recent tax changes. By deferring the implementation and providing clearer timelines, the government aims to ensure a smoother transition and minimize any potential disruptions to businesses.
These measures demonstrate the government’s responsiveness to the needs of the business community and its commitment to fostering a conducive environment for economic growth and development. With these suspensions in place, stakeholders can engage in further consultations and discussions with the government to ensure that tax policies are effectively designed and implemented to support the growth of industries and the overall economy.