Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy, has disclosed that the committee has recommended the removal of taxes on essential items such as food, public transportation, and house rents. The proposal aims to alleviate the financial burden on Nigerians by exempting these basic necessities from taxation.
In an interview in Abuja on Monday, Oyedele explained that the committee’s recommendations also include the exemption of value-added tax (VAT) on these critical goods and services. This move is part of a broader effort to improve the well-being of citizens by making everyday essentials more affordable.
Oyedele further stated that the proposal is expected to be signed by President Bola Tinubu in the near future, after which it will be forwarded to the National Assembly for incorporation into the country’s tax laws. The initiative is seen as a significant step towards easing the economic challenges faced by many Nigerians.
“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.”
“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 basic 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,” Oyedele said.
