The Organised Private Sector has expressed strong support for the Federal Government’s plan to eliminate taxes on essential goods and services, including food items, house rents, and public transportation. This proposal, introduced by the Presidential Committee on Fiscal Policy, aims to ease the financial burden on Nigerians by removing taxes and value-added tax (VAT) on these necessities.
Taiwo Oyedele, Chairman of the committee, explained that the initiative is designed to make essential items more affordable. The proposal, which is expected to be signed by President Bola Tinubu and subsequently sent to the National Assembly, seeks to tax-free public transportation, including buses, while maintaining taxes on taxis.
Sector Reactions:
- Dr. Femi Egbesola, National President of the Association of Small Business Owners of Nigeria, welcomed the tax relief but cautioned that it alone might not resolve deeper economic issues. He called for more comprehensive reforms to address inflation, ease of doing business, and other macroeconomic challenges.
- Segun Ajayi-Kadir, Director-General of the Manufacturers Association of Nigeria, viewed the proposal positively, noting that increased disposable income for Nigerians could boost consumer purchases and alleviate pressures on manufacturers with unsold goods.
- Dr. Muda Yusuf, Director of the Centre for Promotion of Private Enterprises, praised the tax removal on transportation and food but suggested extending the tax relief to energy-related enterprises. He recommended removing taxes on solar panels, inverters, and CNG-conversion accessories to further support energy needs.
Overall, while the proposal has been met with approval, stakeholders emphasize the need for ongoing and broader economic reforms to address Nigeria’s complex challenges.
