The Chairman of the Presidential Committee on Fiscal Policy, Taiwo Oyedele, announced that his committee has recommended the Federal Government eliminate taxes on essential items such as food, public transportation, and house rents.
He shared this during an appearance on Channels Television’s Politics Today program on Monday.
Oyedele explained that the proposal also suggests exempting these necessities from value-added tax (VAT).
He added that the proposal is expected to be signed by President Tinubu soon before being forwarded to the National Assembly for inclusion in Nigeria’s tax laws.
He said, “What we have taken into account is what are those 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.
“We think that from the fiscal policy and tax perspective, we can make it more affordable for the Nigerian people to be able to afford those necessities. Share-passenger transportation is completely tax-free.
“However, if you hire a taxi, we assume that you’re 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’s what we’ve done so far.”