Nigeria announces six-month VAT exemption on diesel

To alleviate the consequences of removing the petrol subsidy, the federal government has announced its intention to temporarily exempt diesel from value-added tax (VAT) for the next six months.

Femi Gbajabiamila, the Chief of Staff to President Tinubu, revealed this development as part of the waivers from the resolution reached between the Federal Government and leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) at the end of a four-hour meeting held at the State House on Sunday. In a statement issued at the end of the meeting, Mohammed Idris, minister of information and national orientation, said the federal government is “committed to fast-tracking the provision of compressed natural Gas (CNG) buses to ease public transportation difficulties associated with the removal of PMS subsidy”

The proposal to implement CNG usage by the Federal Government and other stakeholders is a crucial step in the ongoing efforts to enhance the affordability of mass transportation, particularly following the removal of the fuel subsidy, which resulted in increased fuel prices.

Additionally, he stated that the government would see to the provision of funds for micro and small-scale enterprises, adding that the value-added tax (VAT) on diesel will be waived for the next six months.

In its latest monthly inflation data, the National Bureau of Statistics revealed that the average retail price of Automotive Gas Oil (Diesel) experienced an 8,57 percent increase. In August 2023, consumers were, on average, paying N854.32 per litre, marking a rise from the lower cost of N786,88 per litre recorded in the same month of the preceding year. – Business Insider Africa.

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