The federal government has been urged to remove taxes on essential goods and services such as food items, public transportation, house rents, and other basic necessities crucial to the well-being of the citizens.
Chairman of the Presidential Committee on Fiscal Policy, Mr Taiwo Oyedele, stated this during an interview with newsmen in Abuja, noting that the proposal also seeks to exempt these basic necessities from value-added tax.
Oyedele said that the proposal is expected to be signed by President Bola Tinubu shortly and forwarded to the National Assembly for incorporation into the nation’s tax laws.
He explained that the committee’s approach aims to make basic needs more affordable for Nigerians, noting that public transportation, such as buses, would be entirely tax-free.
The Presidential Committee Chairman on Fiscal Policy clarified that there will be exemption to private hire services, like taxis, suggesting that the users of such services are not among the poorest Nigerians.
Oyedele also emphasised that the committee has recommended additional tax incentives to spur employment, particularly in the private sector, noting that the measures include offering tax exemptions to companies that significantly expand their workforce.
This latest measure is part of the federal government’s ongoing tax reform initiative, which was launched following the creation of the tax and fiscal policy committee by President Tinubu in August 2023.