Nigeria to Remove Taxes on Food, Rent, and Other Essentials
The Chairman of the Presidential Committee on Fiscal Policy, Taiwo Oyedele, has revealed that his committee has recommended that the Federal Government remove taxes on essential items such as food, public transportation, and house rents, which are crucial to the well-being of Nigerians.
In a recent interview on Channels Television, Oyedele explained that the proposal also includes the exemption of value-added tax (VAT) on these essential goods and services.
“We have carefully considered what constitutes the necessities of life—food, accommodation, transportation, education, and health. We have identified these critical items and proposed the removal of almost all taxes on them, including VAT,” Oyedele said. “From a fiscal policy and tax perspective, this will make these essentials more affordable for Nigerians. For instance, shared-passenger transportation will be completely tax-free. However, if you hire a taxi, we assume you are not among the poorest Nigerians, so the tax will still apply. But if you take a bus, it will be entirely tax-free. That’s the approach we’ve taken.”
He added that the proposal would soon be signed by President Tinubu before being forwarded to the National Assembly for incorporation into Nigeria’s tax laws.