Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy, has announced that the committee has recommended the removal of taxes on essential items such as food, public transportation, house rents, and other necessities to the Federal Government.
Speaking on Channels Television’s Politics Today program on Monday, Oyedele revealed that the proposal includes the exemption of value-added tax (VAT) on these essential goods and services, aiming to alleviate the financial burden on Nigerians.
Oyedele explained that the proposal is expected to be signed by President Tinubu soon before being submitted to the National Assembly for incorporation into Nigeria’s tax laws.
He said, “We have considered what constitutes the necessities of life—food, accommodation, transportation, education, and health. We’ve specifically identified these items and have proposed removing almost all taxes on them, including VAT.”
He further elaborated, “From a fiscal policy and tax perspective, we believe this will make these essential items more affordable for Nigerians. For example, shared-passenger transportation will be entirely tax-free. However, if you hire a taxi, it is assumed you are not among the poorest Nigerians, so a tax will apply. But if you board a bus, there will be no tax at all. That’s the framework we’ve established so far.”
