The Federal Executive Council (FEC) of Nigeria, under President Bola Tinubu, has approved the Economic Stabilisation Bills (ESB) as part of the Accelerated Stability and Advancement Plan. This initiative aims to amend over 15 tax, fiscal, and establishment laws to enhance economic stability in the country. Key objectives include reducing inflation, strengthening the naira, promoting job creation, and addressing poverty alleviation.
Here are the ten proposed changes from the ESB:
1. **Income Tax Law Amendments**: Facilitate employment in the global value chain, especially in the digital economy.
2. **Zero-rated VAT and Incentives**: Promote exports of goods, services, and intellectual property.
3. **Gas Sector Investment**: Simplify local content requirements to enhance competitiveness.
4. **Foreign Exchange Reform**: Enhance the CBN's regulatory powers, increase forex liquidity, and stabilize the naira.
5. **Tax Reliefs for Employers**: Provide tax relief for wage awards and transport subsidies for employees.
6. **Incentives for Job Creation**: Tax relief for companies that create and retain jobs for at least three years.
7. **Fiscal Discipline**: Enhance remittances from government agencies to the Consolidated Revenue Fund.
8. **Collaboration with States**: Suspend certain taxes on small businesses and vulnerable populations, such as road haulage levies.
9. **Tax Identification Consolidation**: Initiate a program to expand the tax base and create equitable conditions for businesses.
10. **Student Loan Scheme Funding**: Provide additional funding for the Students Loan Scheme.
These reforms are seen as essential for stabilizing Nigeria's economy and fostering long-term inclusive growth.