The chairman of the presidential committee on fiscal policy, Taiwo Oyedele said the committee has proposed the removal of taxes on food, public transportation, and house rents, to ease the financial burdens of Nigerians.
Oyedele during an interview with Channels TV in Abuja said the proposal also includes the exemption of value-added tax (VAT) on these necessities and will soon be signed by President Tinubu before being sent to the National Assembly to become part of the tax laws in the country.
He also disclosed that the committee’s recommendation for tax incentives aimed at boosting employment, particularly within the private sector, added that these measures include offering tax exemptions to companies that significantly increase their workforce, a policy designed to stimulate job creation while providing relief to businesses across the country.
He said, “What we have taken into account is what are those 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 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.
He added that “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 normally do, they get some relief. That helps to stimulate employment generation”.
