FG Denies Plan to Introduce New Taxes
The Federal Government has denied claims that it planned to introduce new taxes on telecommunications services and petroleum products.
The government said the International Monetary Fund (IMF) Article IV Consultation Report on Nigeria should not be misconstrued as the official position of the Nigerian government.
The IMF report had said Nigeria may need to extend VAT to fuel products and introduce excise duties on telecommunications services to raise revenue, fund development, and social spending.
In a statement on Wednesday issued by Efe Ovuakporie, Head Information and Public Relations Unit, Ministry of Finance, said the IMF report did not reflect federal government’s policy direction.
“The IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy as well as recommendations for consideration by the authorities.
“Those recommendations do not amount to government policy and are not binding on Nigeria. Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities,” it stated.
The government said that the Value Added Tax (VAT) waiver on petroleum products remains in place and has not been withdrawn.
It also said although existing legislation provides for a fuel surcharge, such a measure can only take effect through a ministerial order and publication in the Official Gazette.
“No such process is under consideration.
“The continued suspension of these charges has helped cushion the effect of global energy price fluctuations on households and businesses while keeping domestic fuel prices relatively stable”.
The government further clarified that the telecommunications excise duty introduced before 2023 has been repealed under the new tax laws and therefore no longer applicable.
Against this backdrop, the statement noted that reports claiming that new taxes are being planned for telecommunications services or petroleum products “are not factual and should be disregarded”.
The government said it remained focused on reforms that promote economic growth, improve revenue administration, and create a more competitive environment for investment and job creation.
“The emphasis remains on expanding economic activity, plugging leakages and improving efficiency rather than placing additional tax burdens on citizens.
“Any future tax measures will be announced through official channels and implemented in line with the law”, the statement added.
Never miss a moment! Get the stories shaping Nigeria, delivered straight to your phone. Follow Peoplesdaily Newspaper on WhatsApp for breaking news, exclusive reports, and the headlines everyone will be talking about, before anyone else.
