Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy, announced that the committee has recommended the Federal Government eliminate taxes on essential items such as food, public transportation, housing rents, and other necessities vital to the well-being of Nigerians.
Oyedele made this statement during an appearance on Channels Television’s Politics Today program on Monday. He mentioned that the proposal also suggests exempting value-added tax (VAT) on these essential items. According to Oyedele, the proposal is expected to be signed by President Tinubu shortly before being presented to the National Assembly for inclusion in Nigeria’s tax legislation.
“What we have taken into account is what are those 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 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.” Ayodele Said.
In addition, he noted that the committee has proposed tax incentives intended to enhance employment, especially in the private sector. Oyedele clarified that these measures involve granting tax exemptions to companies that substantially expand their workforce. He emphasized that this policy aims to encourage job creation while also offering relief to businesses nationwide.
