Taiwo Oyedele, Chairman of the Presidential Committee on Tax Reforms, has announced that the federal government plans to eliminate taxes on essential items such as food, housing, and public transportation. This move aligns with recommendations from the committee’s New Tax Policy document, which is awaiting full approval and implementation.
In an interview with Channels TV on Monday, Oyedele explained that this policy aims to alleviate economic hardship by making basic necessities more affordable for Nigerians.
“We have focused on essential items like food, housing, transportation, education, and health. We’ve removed nearly all taxes from these areas, including VAT,” Oyedele stated. “Our goal is to ease the financial burden on Nigerians and make it easier for them to afford these basics.”
However, the policy differentiates between types of transportation. While taxis will remain taxable, public buses will be exempt from taxes. Oyedele elaborated, “If you hire a taxi, we assume you’re not among the poorest Nigerians, so that service will still incur tax. On the other hand, public bus rides will be completely tax-free.”
Additionally, the government plans to offer tax cuts to private employers who provide free transportation for their employees. This initiative is part of a broader strategy to support job creation. Employers who hire more staff than usual will also receive tax relief, aimed at addressing the country’s high unemployment rate.
“We’ve also proposed tax relief for private sector employers who offer transportation benefits to their workers,” Oyedele said. “Furthermore, employers who increase their workforce beyond the norm will benefit from tax cuts, which will help stimulate job creation.”
These measures are part of the government’s ongoing efforts to ease the economic pressures faced by many Nigerians and support the broader economy.
