Economic and Financial experts have applauded the removal of taxes on telecommunications, cars, and locally manufactured products saying it will ease the plight of citizens and means of doing business in the country.
President Bola Ahmed Tinubu on Thursday reversed some of the taxes imposed in the last-minute Fiscal Policy Measures (FPM) which was signed by former President Muhammadu Buhari.
Reacting to the suspension, the Chairman of the Chartered Institute of Bankers of Nigeria, Abuja Chapter, Prof Uche Uwaleke revealed that the recently signed Executive Orders represent a welcome development as they will no doubt enhance the business environment and consequently improve the country’s ranking in the Ease of Doing Business.
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Uwaleke who is also a former Imo State Finance Commissioner, in his reaction made available to THE WHISTLER, said that the move will also help to moderate the increase in inflation.
The National Bureau of Statistics in its May Consumer Price Index (CPI) report had said that the country’s inflation rate stood at 22.41 per cent..This the World Bank projected to hit 25 per cent by December 2023
Uwaleke said “The suspension of the proposed import tax adjustment levy on certain vehicles and the Excise tax on telecommunications and other locally manufactured products will help to moderate the rising inflation and increase productivity.
“Also, the Finance Act Variation Order 2023 will enable taxpayers to adjust to the new provisions in line with the National Tax Policy.”
However, Uwaleke noted that although the developments will help moderate rising inflation, more significant measures with a direct impact on the population need to be put in place.
He said, “To ameliorate the adverse consequences of fuel subsidy removal, the government should immediately roll out palliatives as promised.”
Also, supporting the president’s decision, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf told THE WHISTLER that the issue of multiple taxation was a persisting issue that has put negative pressure on manufacturers, and consumers alongside Small and Medium Enterprise (SMEs).
Yusuf said, “The cost of operation, energy, and, inflation, is constantly on the increase, while disposable income is declining. So, at a time like this, an announcement of relief is what the citizens need
“Reviewing the issues of multitasking is needed to absolve the negative shock of subsidy removal since the government will make almost N7trn from the subsidy, and N4trn from the unification of the exchange rate.
“And since the subsidy removal has been implemented, the government has to relieve the citizens. This I am certain will affect businesses positively because it will relieve the high costs of production, as taxes to be paid will be less, therefore increase in competitiveness and margin will be felt”
He also urged other agencies of government to follow up with implementation of measures that will ease the plights of Nigerians.