TUC Rejects FG’s 15 Percent Petrol Tax

The Trade Union Congress, TUC, has warned that the proposed 15 percent import duty on Premium Motor Spirit also known as petrol will compound the economic problems of Nigerians.

TUC National President Festus Osifo gave the position of the union on the issue while speaking on Channels Television programme “TUC Half Hour” on Wednesday , saying the union is currently studying the proposal to fully understands its implications on the economy.

According to him, the duty will likely increase the pump price of petrol considering that that the country currently imports over 70 percent of the product, as the local refinery have no capacity to meet local needs of Nigerians.

If the proposal is implemented by the government, the TUC President said the pump price of PMS could be as high as N970 per litre in Lagos, with more higher cost in other parts of the country.

He explained that the import duty on petrol is wrong at the time when the local refineries are not working, saying the Dangote Refinery in Lagos cannot produce what the country need, despite the fact that it’s not likely to be affected by the policy because it’s located within a Free Trade Zone, FTZ.

“The first impression was a no, no, no. Why are we imposing tax when our refineries are not producing?be | Punch

“The Dangote Refinery operates within a free trade zone, which means it already enjoys import duty waivers. So, if this 15 per cent duty applies to importers, they will simply transfer the cost to consumers, that’s the reality,” Osifo said.

The Tinubu administration had while announcing the policy recently disclosed that it’s part of the  government’s strategy to protect local refiners and reduce the influx of cheaper imported products that threaten domestic refining investments.