Prof Abiola Sanni, a don of Commercial Law at the University of Lagos, said President Bola Ahmed Tinubu’s decision to suspend the 2023 Finance Act, telecoms, import and other taxes had shown the highest political will to improve Nigeria’s business environment.
Sanni disclosed this on Friday in a Channels Television Interview.
The tax and fiscal policy don noted that Tinubu’s four executive orders to suspend arbitrary taxes would bring short-term reprieve for shareholders in the nation’s economy.
He advised that some aspects of the Finance Act, such as the telecoms tax, should be abolished.
However, Sanni urged that the aspect of green tax looks promising.
“It demonstrates political will from the highest level to arrest the drift. I thank the president for coming through for stakeholders. Also, kudos to the stakeholders for their doggedness.
“It is a step in the right direction. But this is not about suspension but also about postponing commencement day because enforcing the 2023 Finance Act is already problematic.
“While stakeholders would clamour for total abolition, I think what we have now offered some reprieve, bearing in mind this new Administration is just settling; there are no ministers in place. It is a measure to buy time for consultation. There are aspects of the Finance Act that need to be thrown away. For instance, I don’t believe in the 5 per cent tax for telecoms because clearly, that is double taxation but an aspect of green tax offer some promise,” he said.
The president had on Thursday issued four executive orders to suspend the implementation of the 2023 Finance Act, Corporate, import, export, vehicle and other taxes.