- President Bola Tinubu’s new executive orders suspended import duties on various products
- Two of the executive orders stopped import levies on certain classes of vehicles and single-use plastics (SUPs)
- Also, the President suspended the proposed green tax and proposed a 5% excise duty on telecommunication services
President Bola Tinubu signed four new Executive Orders on Thursday, July 6, 2023, two of which stopped the new levy on imported vehicles and proposed a 5% tax on telecom.
The Executive Orders suspended the import adjustment tax imposed on certain vehicles.
Types of vehicles exempted from import taxes
According to Dele Alake, Special Adviser to the President on Special Duties, Communication, and Strategy, the IAT was approved by ex-President Muhammadu Buhari and was to take effect on June 1, 2023.
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Imported vehicles with litres to 3.9 litres engines were asked to pay an IAT equivalent to two percent of the value of the imported cars, while vehicles with 4 liter engines and above attract an IAT of 4 per cent of their value.
Meanwhile, vehicles with engines below 2 litres, mass transit buses, electric cars, and locally made vehicles were exempted from the IAT.
TheCable reported that the Nigerian government introduced a green tax of excise duty on single-use plastics (SUPs), including plastic containers, films, and bags, at a 10% rate.
FG suspends Excise Duty on Telecom services
The green tax has similarly been suspended.
Alake stated that the development aligns with President Bola Tinubu’s promise to address unfriendly business fiscal policy measures and tax duplication.
“Further to his commitment to creating a business-friendly environment, the President has ordered the suspension of the newly introduced Green Tax by way of Excise Tax on Single-Use Plastics, including plastic containers and bottles. In addition, the President has ordered the suspension of Import Tax Adjustment levy on certain vehicles,” Alake said.
“As a listening leader, 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.
“In closing, the President wishes to reiterate his commitment to reviewing complaints about multiple taxation, local and anti-business inhibitions.
“The Federal government sees business owners, local and foreign investors as critical engines in its focus on achieving higher GDP growth and an appreciable reduction in the unemployment rate through job creation.
“The government will, therefore, continue to give requisite stimulus through friendly policies to allow businesses to flourish in the country.
“President Bola Tinubu wishes to assure Nigerians by whose mandate he is in power that there will not be further tax raise without robust and wife consultations undertaken within the context of a coherent fiscal policy framework.”
Punch reports that one of the executive orders is suspending the 5% Excise Tax on Telecommunication services and the Excise Duties on locally made products.
Tinubu set to repay Nigeria’s $500 million Eurobond debt in July
Legit.ng reported that President Bola Tinubu’s government will embark on its first debt-servicing this July to redeem a $500 million Eurobond as Nigeria continues to battle economic challenges.
According to data from the Debt Management Office (DMO), a $500 million Eurobond loan is due for repayment this month in line with its conditions.
The Nigerian government obtained the loan five years ago at a coupon rate of 6.375% per annum.