According to Gazette News, President Bola Tinubu is contemplating a six-month suspension of tax, levies, or charges collection for specific sectors of the economy.
Recipients of this tax suspension would include Okada riders, goods transporters, fuel transporters, wheelbarrow and cart pushers, shop owners, market traders, among others.
This proposal is outlined in a draft executive order titled “Inflation Reduction and Price Stability (Fiscal Policy Measures, etc.) Order 2024,” dated May 1. The objective is to reduce inflation and lower the prices of food items nationwide.
As per the draft executive order, President Bola Tinubu cited his authority under Section 5 of the Nigerian Constitution (as amended), Section 38 of the Value Added Tax Act, Cap V1 2004 (as amended), and other relevant powers.
The suspension outlined in the draft order covers various taxes, levies, and charges, including road haulage tax and any other levies on transportation of goods, fees for bicycles, trucks, canoes, wheelbarrows, and carts.
Additionally, it encompasses taxes and levies related to business premises registration, shops, kiosks, and markets, as well as taxes on animal trade and produce sales. Furthermore, there is a proposed further suspension of VAT and diesel (AGO).
The draft order also instructs that “States and Local Governments shall take appropriate measures to support the implementation of the tax suspension.” This will indicate a collaborative effort between the federal, state, and local government levels to facilitate the execution of the tax suspension measures.
