In a bold move to combat inflation and stabilize prices, President Bola Tinubu is considering a six-month suspension of various taxes, levies, and charges across several sectors of the economy.
This initiative, outlined in a draft executive order titled “Inflation Reduction and Price Stability (Fiscal Policy Measures, etc.) Order 2024,” dated May 1, aims to alleviate financial pressures and reduce the cost of food items nationwide.
The proposed tax suspension targets a wide range of recipients, including Okada riders, goods transporters, fuel transporters, wheelbarrow and cart pushers, shop owners, and market traders.
According to the draft order, President Tinubu is exercising the powers vested in him by Section 5 of the Nigerian Constitution (as amended), Section 38 of the Value Added Tax Act, Cap V1 2004 (as amended), among other authorities.
Specifically, the suspension applies to road haulage taxes and any other levies or charges related to the transportation of goods.
This includes fees for bicycles, trucks, canoes, wheelbarrows, and carts. Additionally, the suspension covers business premises registration, shop, kiosk, and market taxes and levies, animal trade and produce sales taxes, and extends to further suspension of VAT on diesel (AGO).
The draft order also mandates that state and local governments take appropriate measures to support the implementation of this tax suspension, ensuring a cohesive effort to bring down inflation and stabilize prices across Nigeria.
