President Bola Tinubu has reintroduced an additional five per cent tax on telecommunications business in Nigeria, months after his predecessor Muhammadu Buhari suspended the duty over concerns of imposing an additional burden on a struggling sector of the economy.

The president’s spokesman Dele Alake said the duty would take effect on September 1, effectively reintroducing a policy the former administration considered too draconian for implementation and discontinued in March.

The administration also suspended the implementation of the green tax on single-use plastic and bottles and an import tax adjustment levy on certain vehicles in an announcement on Thursday afternoon.

The decision was to ameliorate the financial burden on the masses. It came weeks after the president removed fuel subsidies and imposed additional taxes on vehicle owners and businesses.

The president signed the customs and excise tariff amendment order, 2023, claiming it was shifting the commencement date of the tax changes from March 27, 2023, to August 1, 2023.

He also signed the finance act order, 2023, which defers the commencement date of the changes contained in the Act from May 23, 2023, to September 1, 2023.

“Suspension of the newly introduced green tax on single-use plastics and the import tax adjustment levy on certain vehicles” would take effect immediately, Mr Alake said.

The administration said it would continue to implement friendly policies that stimulate and nurture businesses across the country while assuring Nigerians there will be consultation before taxes will be increased in the near future.

(The Peoples Gazette)

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The federal government has suspended the import adjustment tax (IAT) imposed on certain vehicles.

The IAT which was approved by former President Muhammadu Buhari took effect on June 1,2023.

Imported vehicles with 2 litres to 3.9 litres engines were required to pay an IAT equivalent to two percent of the value of the vehicle while vehicles with 4 litres engines and above attract an IAT of 4 percent of their value.

However, vehicles with engines below 2 litres, mass transit buses, electric vehicles and locally manufactured vehicles were exempted from the IAT.

(The Cable Index)