Nigeria’s President Bola Tinubu has taken action to alleviate business costs in the country by ordering the suspension of certain taxes and duties.
One of the measures suspended is a newly introduced 10% tax on single-use plastics, including plastic containers and bottles.
This tax aimed to address Nigeria’s significant plastic pollution issue, as the country contributes around 2.5 million tonnes of plastic waste annually, some of which ends up in the ocean.
Additionally, the executive orders signed by President Tinubu suspended the implementation of a 5% telecoms tax that was initially proposed by the previous government.
Furthermore, an increase in car import duty and excise duty on specific locally manufactured goods was halted.
The intention behind these measures is to reduce business costs in Africa’s largest economy.
“As a listening leader, the president issued these orders to ameliorate the negative impacts of the tax adjustments on businesses and chokehold on households across affected sectors,” Alake told reporters.
Tinubu, who took office in May, has embarked on Nigeria’s boldest reform agenda in decades, including the removal of a popular petrol subsidy and restrictions on foreign exchange trading, as he seeks to boost sluggish growth.
There would be no further tax rises without wider consultations, Alake said, adding that Tinubu would pursue business-friendly policies.