On July 6, 2023, President Bola Tinubu issued four new executive orders, two of which banned a new tax on imported automobiles and one of which suggested a 5% telecom tax.
The import adjustment tax levied on specific cars was stopped by the Executive Orders.
The IAT was authorized by the late President Muhammadu Buhari and was scheduled to go into effect on June 1st, 2023, according to Dele Alake, Special Adviser to the President on Special Duties, Communication, and Strategy.
While vehicles with 4 liter engines and above are subject to an IAT of 4% of their value, imported vehicles with up to 3.9 liter engines were required to pay an IAT equivalent to 2% of the value of the imported automobiles.
The IAT was suspended for automobiles with engines smaller than 2 liters, public transportation buses, electric vehicles, and locally produced automobiles.
According to TheCable, the Nigerian government implemented a 10% green tax of excise duty on single-use plastics (SUPs), such as plastic bags, films, and containers.
The green tax has also been put on hold.
According to Alake, the move is consistent with President Bola Tinubu’s pledge to reduce tax duplication and unfavorable company fiscal policy measures.
Alake said
“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.”