BY FESTUS OKOROMADU
Experts and operators of the Nigerian economy have applauded President Bola Tinubu over the suspension of various tax policies earlier approved by the immediate past administration.
Reacting to President Tinubu’s signing of the Executive Orders on suspension of excise duties on locally manufactured goods, Director General, the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said the decision has put to rest the anxieties of manufacturers in the affected sectors
Speaking on the issue, Ajayi-Kadir said: “The suspension of the obnoxious aspects of the 2023 FPM, which arbitrarily imposed an additional tax burden on the manufacturing sector, is a welcome development and has removed a looming clog on its operations and productivity.
“Manufacturers in the affected sector are pleased and we can now reconnect with our projections and plans made at the beginning of the year.
“We expect that the Customs Service will now stand down the requirements for compliance with the excise escalation and the registration for the green tax.”
Also, commenting on the suspension, the National President, NACCIMA, Dele Oye, said the decision was a welcome development as the lack of clarity on the tax changes had caused confusion.
“We appreciate the administration’s commitment to ensuring that Nigerian businesses are not unduly burdened by unfavourable policies,” he noted.
The NACCIMA helmsman disclosed that the lack of adequate notice and clarity on the implementation of the changes has resulted in significant challenges for affected businesses, including rising costs, falling margins and capacity underutilization.
He commended the decision by President Tinubu to sign Executive Orders deferring the commencement of the tax changes as contained in the Finance Act and Customs, Excise Tariff (Variation) Amendment Order.
“We also support the suspension of the 5% Excise Tax on telecommunication services, the Excise Duties escalation on locally manufactured products, the Green Tax on Single Use Plastics, including plastic containers and bottles, and the Import Tax Adjustment levy on certain vehicles,” Oye said.
Speaking to our correspondent via telephone, Professor of the capital market and lecturer at the Nasarawa State University, Uche Uwaleke said, the decision to suspend the tax regime would help to moderate rising inflation and increase productivity.
Uwaleke said the recently signed Executive Orders represent a welcome development as they would no doubt enhance the business environment and consequently improve the country’s ranking in the Ease of Doing Business”.
“Also, the Finance Act Variation Order 2023 is equally in order to enable taxpayers to adjust to the new provisions in line with the National Tax Policy”, he said.
According to him, as these developments will help moderate rising inflation, more measures with a direct impact on the population need to be put in place in order to significantly ameliorate the adverse consequences of fuel subsidy removal.
“These should include the immediate roll-out of palliatives promised by the government,” he added.
