Economist Urges Tinubu to Cut Taxes to Ease Fuel Subsidy Removal Impact

Agency ReporterAugust 8, 2023

1 minute read

As Nigerians grapple with the economic hardship caused by the fuel subsidy removal policy, an economist and financial expert has suggested that President Bola Ahmed Tinubu should lower personal and company income taxes to boost the disposable income of the citizens.

Prof Godwin Oyedokun, an accounting and financial development Don at Lead City University, Ibadan, made this recommendation on Monday as a way of alleviating the economic woes of Nigerians.

Newsflash Nigeria reports that the fuel subsidy removal by Tinubu’s government led to a surge in fuel pump prices to over N600 per litre. This, in turn, triggered a spike in inflation, which rose to 22.79 per cent in June, as transportation, food and service prices soared.

Oyedokun said that the government should adopt a temporary measure of reducing personal income tax, which would increase the net income of individuals and enable them to cope with the rising cost of living. He also said that the government should reduce company income tax, which would encourage businesses to invest and create more jobs.

“I would love a situation where the government reduces personal income tax. The government cannot guarantee the salaries of private companies, but it can lower personal and company income taxes. So that companies and individuals can breathe”, he said.

He explained that the government could temporarily reduce personal income tax by 50% and company income tax by 25%. This, he said, would help to give Nigerians more money to spend on essentials, such as food, transportation, and healthcare.

Oyedokun also said that the government should introduce measures to support businesses, such as waiving import duties on raw materials and providing tax breaks. This, he said, would help to keep businesses afloat and create jobs.

He added that the government should also invest in infrastructure, such as roads, railways, and power plants. This, he said, would help to boost economic growth and create jobs.

Oyedokun’s suggestions are timely and important. The fuel subsidy removal has had a significant impact on Nigerians, and the government needs to take steps to help them cope. Reducing personal and company income taxes and supporting businesses are two important steps that the government can take to help Nigerians through this difficult time.