Professor of Finance and the Capital Market at the Nasarawa State University, Uche Uwaleke, has reacted to Executive Orders (Eos) signed by President Bola Ahmed Tinubu on Thursday, saying it would improve Nigeria’s business environment.
Uwaleke also said the President’s action would improve Nigeria’s ease of Doing Business ranking.
Analysts say it would help moderate rising inflation in the country.
On Thursday, President Bola Ahmed Tinubu signed four Executive Orders. The Eos are the suspension of the 5 per cent excise duty on telecommunication services, Customs, Excise Tariff (Variation) Amendment Order, 2023, shifting the commencement date of the tax changes from March 27, 2023 to August 1, 2023 and also in line with the National Tax Policy, suspension of the newly introduced Green Tax by way of Excise Tax on Single-Use Plastics, including plastic containers and bottles as well as the suspension of Import Tax Adjustment levy on certain vehicles.
Nigeria’s inflation figures currently stands at 22.41 per cent with the World Bank’s Nigerian Development Update report projecting that the rates may hit 25 per cent by end of 2023.
Analysts have said severally that the ease of doing business in Nigeria was stifling businesses especially SMEs, who have had to deal with multiplicity of taxes.
“The recently signed Executive Orders represent a welcome development as they will no doubt enhance the business environment and consequently improve the country’s ranking in the Ease of Doing Business.
“The suspension of the proposed import tax adjustment levy on certain vehicles and the Excise tax on telecommunications and other locally manufactured products will help to moderate the rising inflation and increase productivity.
“Also, the Finance Act Variation Order 2023 is equal in order to enable taxpayers to adjust to the new provisions in line with the National Tax Policy,” Uwaleke said.
