The Federal Government is set to propose the removal of taxes on essential goods and services, including food items and rent, according to Taiwo Oyedele, a key fiscal policy advisor.
Speaking on Channels Television’s Politics Today program, Oyedele revealed that the proposal will also include the exemption of Value Added Tax (VAT) on these necessities.
Oyedele indicated that this initiative, aimed at making basic necessities more affordable for Nigerians, is expected to be signed by President Tinubu shortly.
Following the President’s endorsement, the proposal will be submitted to the National Assembly for incorporation into Nigeria’s tax laws.
The proposed tax relief covers a range of essential areas, including food, accommodation, transportation, education, and health services.
“We have deliberately identified these essential items and removed almost all applicable taxes, including VAT, to ease the financial burden on Nigerian citizens,” Oyedele stated.
Under the proposal, share-passenger transportation will be entirely tax-free, whereas taxi services will still incur taxes.
The rationale behind this is that the government considers bus transportation as more accessible to the lower-income population compared to taxis.
“This approach aims to enhance affordability for basic necessities and support the well-being of Nigerian families,” Oyedele added.
The move reflects a strategic effort to adjust fiscal policies in favor of greater economic relief for the public.