The Chairman of the Presidential Committee on Tax Reforms, Taiwo Oyedele, has said the federal government would remove tax from food items, house rents and public transport systems.
Taiwo Oyedele said the move aligned with the recommendation of the committeeโs New Tax Policy document waiting for full approval and implementation.
In an interview with Channels TV, on Monday, Oyedele said the policy to remove taxes on basic necessities was part of the governmentโs effort to address economic hardship.
โWhat we have taken into account is what are those basic necessities of life, food, accommodations, transportation, education and health. We have deliberately identified those items. And we have removed almost all the taxes applicable to them, including no VAT.
โWe think that from the fiscal policy and tax perspective, we can make it more affordable for the Nigerians people to be able to afford those basic necessities.
โHowever, if you hire a taxi, we assume that you are 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 is what we have done so far,โ Oyedele said.
The Chairman of the Presidential Tax Reform Committee also stated that private employers that provide free transportation services for their staff would also get tax cuts from the government.
He added that the government will also implement tax cuts for employers that employ more staff than they would normally employ. This he said, would help to address the countryโs high unemployment rate.
โWe have also developed some proposals where the government can give relief to private sector employer who provide transportation relief to their workers.
โAlso, we have had a proposal around more employment. So if an employer employs more people than they will normally do, they get some relief. That helps to stimulate employment generation,โ he added.