In a significant move to address concerns raised by manufacturers and stakeholders, President Bola Tinubu has taken decisive action by signing three executive orders that suspend major tax measures. The President’s Special Adviser on Special Duties, Communications, and Strategy, Dele Alake, made the announcement at the Presidential Villa on Thursday, heralding a momentous step towards ensuring clarity and adequate notice for tax adjustments, in line with the 2017 National Tax Policy.
The first executive order signed by President Tinubu, the Finance Act (Effective Date Variation) Order, 2023, is set to defer the implementation of the changes outlined in the Act. Originally scheduled for May 23, 2023, the implementation date has been postponed to September 1, 2023. This extension ensures compliance with the stipulated 90-day advance notice for tax changes, giving businesses and manufacturers the opportunity to prepare and adjust their financial strategies accordingly.
In a move to align with the National Tax Policy guidelines, the second order, the Customs Excise Tariff (Variation) Amendment Order, 2023, also adjusts the commencement date of tax changes. Previously set for March 27, 2023, the changes will now take effect from August 1, 2023. This synchronization with the National Tax Policy guidelines is aimed at fostering greater transparency and predictability in the tax landscape, benefiting businesses and fostering a conducive economic environment.
Furthermore, President Tinubu’s third executive order takes a significant stride towards supporting the telecommunications and local manufacturing sectors. The order suspends the imposition of the 5% Excise Tax on telecommunication services and also halts the escalation of Excise Duties on locally manufactured products. This bold decision aims to boost the growth and competitiveness of these vital industries, encouraging innovation, investment, and job creation.
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The suspension of these major tax measures by President Tinubu demonstrates a commitment to engaging with stakeholders and addressing their concerns effectively. By adhering to the principles of the National Tax Policy, which emphasize transparency, predictability, and adequate notice for tax adjustments, the government is fostering an environment that encourages economic growth and development.
Manufacturers and businesses alike welcome this move as it provides them with the needed clarity and time to adjust their financial plans and operations accordingly. Moreover, the suspension of the 5% Excise Tax on telecommunication services and Excise Duties escalation on locally manufactured products will act as catalysts for further investments and expansion within these sectors.
President Tinubu’s actions signify a balanced approach towards taxation, considering the needs of both businesses and the economy at large. The government’s responsiveness to stakeholders’ concerns and its commitment to a predictable tax regime will undoubtedly strengthen investor confidence and promote a thriving business environment.
In conclusion, President Bola Tinubu’s recent executive orders demonstrate leadership and proactivity in responding to the concerns of manufacturers and stakeholders. By suspending major tax measures, aligning with the National Tax Policy guidelines, and supporting key industries, the government is paving the way for sustainable economic growth and development.
Source: Leadership Newspaper
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