The federal government under President Bola Ahmed Tinubu is planning to remove taxes on food, public transportation, house rents, and other necessities critical to the well-being of Nigerians.
The chairman of the presidential committee on fiscal policy, Taiwo Oyedele Oyedele shared this information on Monday during an interview with Channels TV in Abuja.
The head of the committee stated that the proposal also includes the exemption of value-added tax (VAT) on these essential necessities.
Oyedele said the proposal will soon be signed by President Tinubu before being sent to the National Assembly to become part of the tax laws in the country.
“What we have taken into account is what are those basic necessities of life—food, accommodations, transportation, education and health. We’ve deliberately identified those items. And we’ve removed almost all the taxes applicable to them, including no VAT.
“We think that from the fiscal policy and tax perspective, we can make it more affordable for the Nigerian people to be able to afford those basic necessities. Share-passenger transportation is completely tax-free.
“However, if you hire a taxi, we assume that you’re not the poorest Nigerian so you have to pay the tax. Whereas if you get into a bus, that will be completely tax-free. That’s what we’ve done so far,” Oyedele said.
Speaking further, he mentioned that the committee has also recommended tax incentives aimed at boosting employment, particularly within the private sector.
Oyedele explained that these measures include offering tax exemptions to companies that significantly increase their workforce.
He added that this policy is designed to stimulate job creation while providing relief to businesses across the country.
“We’ve also developed some proposals where the government can give relief to private sector employers who provide transportation relief to their workers.
“Also, we have had proposals around more employment. So if an employer employs more people than they will normally do, they get some relief. That helps to stimulate employment generation,” Oyedele added.
Earlier in July, the federal government through the Ministry of Agriculture and Food Security announced a 150-day duty-free importation of essential food items such as rice, maize, wheat and cowpea.
The Minister of Agriculture and Food Security, Sen. Abubakar Kyari stated that the policy is part of the implementation of the Presidential Accelerated and Stabilisation Advancement Plan (ASAP), which includes the federal government importing 250,000 metric tonnes of wheat and maize to refill the depleted strategic reserves.
The policy to import essential food items into the country has drawn the ire of stakeholders in the agricultural sector. Former Minister of Agriculture and current President of the African Development Bank (AfDB), Dr. Akinwunmi Adesina faulted the policy stating that food imports could destroy Nigeria’s agricultural policy.
Furthermore, the President of the All-Farmers Association of Nigeria (AFAN), Arch. Kabir Ibrahim lamented that the policy would erode the gains made in local production of rice, maize and wheat in the country.
Meanwhile, the Nigeria Customs Service (NCS) said it has begun implementing the duties and tax-free importation.
The Comptroller-General of the Nigeria Customs Service (NCS), Mr. Adewale Adeniyi, disclosed this during a press briefing on the service’s half-year performance.
He stated that the government is committed to addressing the rising costs of essential food items to reduce hunger in the country.
He said, “The Nigeria Customs Service (NCS) is suspending import duties and taxes on essential food items to make them more affordable. We are committed to implementing this measure seamlessly to address the problem of hunger in our nation.”
“We have streamlined export processes to ensure that Nigerian goods reach international markets efficiently. We have introduced tools like Advanced Ruling System, Authorized Economic Operator and Time Release Study to enhance trade, stimulate the economy and create opportunities. Our farmers, artisans and entrepreneurs will now have a faster path to global markets benefitting their families and communities.”