Proposition to remove taxes on Food, Rent, Transport, and Essentials – Taiwo Oyedele
…the committee has proposed various reforms, including increasing Value Added Tax (VAT) and introducing tax exemptions for low-income earners.
Taiwo Oyedele, chairman of the presidential committee on fiscal policy, announced that the committee has proposed to the federal government the removal of taxes on food, public transportation, housing rents, and other essential necessities crucial to the well-being of Nigerians.
Oyedele disclosed this information on Monday during an interview with Channels TV in Abuja.
The committee’s head indicated that the proposal also encompasses the exemption of value-added tax (VAT) on these vital necessities.
He stated that the proposal is expected to be signed by President Tinubu soon before it is forwarded to the National Assembly to become part of the country’s tax legislation.
“What we have considered are the basic necessities of life—food, housing, transportation, education, and healthcare. We’ve purposefully identified those items and removed almost all the taxes applicable to them, including eliminating VAT.
“We believe that, from a fiscal policy and tax perspective, we can make it more affordable for the Nigerian people to access these essential goods. Share-passenger transportation will be entirely tax-free.
“However, if you hire a taxi, it’s presumed that you’re not among the poorest Nigerians, so you would incur the tax. Conversely, using a bus will be completely tax-free. That is our current framework,” Oyedele stated.
Tax Incentives for Job Creation
Additionally, he mentioned that the committee has recommended tax incentives to encourage employment, especially in the private sector.
Oyedele elaborated that these initiatives include providing tax exemptions to companies that significantly expand their workforce.
He emphasized that this policy aims to spur job creation while offering relief to businesses nationwide.
“We’ve also formulated proposals allowing the government to provide relief to private sector employers who offer transportation support to their employees.
“Moreover, we have made proposals regarding increased employment opportunities. So if an employer hires more staff than usual, they receive certain concessions. This is designed to stimulate job creation,” Oyedele added.
What You Should Know
The federal government’s ongoing tax reform initiative was initiated following President Bola Tinubu’s establishment of a tax and fiscal policy committee in August 2023.
Renowned tax expert Taiwo Oyedele heads the committee.
Its mandate includes creating a new tax framework to drive economic growth and development throughout the country.
As part of its responsibilities, the committee has proposed various reforms, including increasing Value Added Tax (VAT) and introducing tax exemptions for low-income earners, among other measures.
