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 committee’s 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 government’s effort to address economic hardship.
“What 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.
“We 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.
“However, 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,” 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 country’s high unemployment rate.
“We have also developed some proposals where the government can give relief to private sector employer who provide transportation relief to their workers.
“Also, 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,” he added.
