The Federal Government is set to eliminate taxes on essential goods and services, including food, public transportation, and house rents, in a bid to ease the financial burden on Nigerians.
This decision follows recommendations from the Presidential Committee on Fiscal Policy, chaired by Taiwo Oyedele.
In an interview on Channels Television’s Politics Today on September 2, Oyedele detailed the proposal, which includes removing value-added tax (VAT) on these critical necessities. The goal is to make essential goods and services more affordable for the public.
“We have carefully considered what constitutes necessities of life—food, accommodations, transportation, education, and health. We’ve decided to remove almost all taxes on these items, including VAT,” Oyedele explained.
He clarified that public transportation services like buses will be tax-free. However, services considered non-essential, such as taxi hires, will remain taxable, targeting a more affluent segment of the population.
The proposal is anticipated to be signed by President Bola Tinubu before being introduced to the National Assembly for integration into Nigeria’s tax laws.