The chairman of the presidential committee on fiscal policy, Taiwo Oyedele, has revealed that the committee has proposed to the federal government the removal of taxes on food, public transportation, house rents, and other basic necessities critical to the well-being of Nigerians.
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.
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Accordingly, 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.
Tax Incentives for Job Creation
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.
What you should know
- The federal government’s ongoing tax reform initiative was launched following the establishment of a tax and fiscal policy committee by President Bola Tinubu in August 2023.
- The committee is headed by renowned tax master, Taiwo Oyedele.
- It is tasked with creating a new tax framework to drive economic growth and development across the country.
- As part of its mandate, the committee has proposed various reforms, including an increase in Value Added Tax (VAT) and the introduction of tax exemptions for low-income earners, among other measures
Source: NairaMetrics
