Tinubu puts APC politics aside, reverses Buhari’s killer import taxes on cars, plastics, others…Says ‘it’s time to have mercy’

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Pix above (L-R): PBAT and Muhammadu Buhari

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President Bola Ahmed Tinubu has put APC politics aside reversing some of the taxes imposed in the last-minute Fiscal Policy Measures (FPM) which was signed by his predecessor, Muhammadu Buhari, saying as a matter of truth, the taxes amount to killing the citizens softly and it’s time to have mercy.

The taxes were stepped down in an Executive Order by the president on Thursday.

They include the suspension of the controversial 5 per cent Excise Tax on Telecommunications services; the 10 per cent Green Tax by way of Excise Tax on Single Use Plastics and the suspension of Import Tax Adjustment levy on certain vehicles.

Buhari’s Finance Minister, Zainab Ahmed, had in a circular reference number, HMFBNP/MDAs/CIRCULAR/2023FP//04 and titled, ‘Approval For The Implementation Of The 2023 Fiscal Policy Measures And Tariff Amendments,’ introduced the tax which took effect June 1, 2023.

The FMP signed by Buhari introduced additional excise taxes ranging from 20 per cent to 100 per cent increase on previously approved rates for alcoholic beverages, tobacco, wines and spirits, have been introduced effective from 1 June 2023.

These are above the 2022 FPM’s approved Roadmap for 2022-2024 in the form of new and higher ad-valorem excise duties and specific rates while the excise duty rate on non-alcoholic beverages was retained at of N10 per litre.

On the Green Taxes, the FG will charge by way of excise duty on Single Use Plastics (SUPs) like plastic containers, films and bags at the rate of 10 per cent.

There is also an Import Adjustment Tax (IAT) levy that was introduced on motor vehicles of 2000 cc to 3999 cc at 2 per cent.

For vehicles of 4000cc and above, the tax will be 4 per cent while vehicles below 2000cc, mass transit buses, electric vehicles, and locally manufactured vehicles are exempted.(agency)/SHARE THIS