The Federal Government is set to ease the financial burden on Nigerians by removing taxes on essential items, according to Taiwo Oyedele, chairman of the presidential committee on fiscal policy.
During an interview with Channels TV in Abuja, Oyedele revealed that the committee has proposed eliminating taxes on food, public transportation, house rents, and other basic necessities critical to the well-being of Nigerians.
The proposal, which includes exempting these necessities from Value Added Tax (VAT), is expected to be signed by President Tinubu before being sent to the National Assembly for legislative approval.
Oyedele emphasized the focus on making essential items more affordable: “What we have taken into account is what are those basic 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.”
In addition to tax relief on basic necessities, Oyedele highlighted the committee’s recommendations for tax incentives aimed at boosting employment.
The proposed measures include offering tax exemptions to companies that significantly increase their workforce and providing relief to private sector employers who support worker transportation.
Oyedele stated, “We’ve also developed some proposals where the government can give relief to private sector employers who provide transportation relief to their workers.”
This initiative is part of the federal government’s broader tax reform strategy, which began with the establishment of the tax and fiscal policy committee by President Bola Tinubu in August 2023.
The committee, led by Oyedele, is tasked with devising a new tax framework to promote economic growth and development, including reforms such as increased VAT and tax exemptions for low-income earners.
