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The Federal Government is considering removing taxes on essential items such as food, public transportation, and house rents to alleviate the financial strain on Nigerians.
This proposal was put forth by the Presidential Committee on Fiscal Policy, led by Chairman Taiwo Oyedele, during a recent interview on Channels Television.
The committee’s recommendations include the exemption of value-added tax (VAT) on these critical necessities, aiming to make life more affordable for citizens struggling with the current economic challenges.
“What we have taken into account is what are those necessities of life—food, accommodations, transportation, education, and health,” Oyedele explained. “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.”
He further clarified that shared passenger transportation would be completely tax-free, while services like taxi hire, considered less essential, would still incur taxes.
The proposal, which has been designed to reduce the financial burden on the average Nigerian, will soon be presented to President Bola Tinubu for approval before being sent to the National Assembly to be incorporated into Nigeria’s tax laws.
The move is expected to restore some level of trust and relief among citizens who have been grappling with high costs of living amidst a challenging economic environment.
