The federal government has announced the removal of Value Added Tax, VAT, on cooking gas and diesel.
The decision to remove VAT on these product has been welcome by not a few Nigerians who said it will impact their prices positively.
For instance, marketers of cooking gas had blamed the rising price of THE product on production costs including VAT which they say is too high.
Petroleum marketers also blamed the high cost of diesel on VAT and other complimentary costs of production.
The Minister of Finance and coordinating Minister of the Economy who announced the removal on Wednesday, disclosed that VAT has been removed from other essential commodities and products.
According to a statement issued by the Director of Information and Public Relations in the ministry said federal government’s aim fro removal VAT on these commodity, is to ensure the development of the nation’s oil and gas sector.
The announcement comes weeks after the Bola Ahmed Tinubu administration denied increasing the VAT from the current 7. 5 percent.
The federal government had rebuffed suggestions that it planned to hike the current VAT rate to 10 percent.
The report had elicited condemnations form not a few Nigerians who said such will further lead to the increase in prices of food and other essential households items.
Speaking yesterday, Edun said the decision to end VAT on diesel, gas, etc is in line with the Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order 2024.
He said: “In addition, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects.
“This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.”
Meanwhile, not a few are waiting to see whether the removal will translate to reduction in the price of these commodities.
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