The International Monetary Fund IV Consultation Report contains the Fund’s assessment of Nigeria’s economy regarding telecommunications excise duties and extend Value Added Tax (VAT) to petroleum products, didn’t sink in the mind of Nigerians who are already hard-pressed with the vagaries of life.
But the Nigerian government has formally dismissed and ruled out proposals from the International Monetary Fund (IMF) to introduce new telecommunications excise duties and extend Value Added Tax (VAT) to petroleum products.
The government in a statement issued by the Head Information and Public Relations Unit, Ministry of Finance, Efe Ovuakporie, clarified that no such taxes are under consideration, saying the VAT waiver on fuel remains.
He disclosed that the report misrepresented the content of the IMF report and did not reflect its policy direction, stating however that those recommendations by the International Monetary Fund do not amount to government policy and are not binding on Nigeria.
“The IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy as well as recommendations for consideration by the authorities.
The statement added: “Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities”, according to the statement.
The statement also clarified that the Value Added Tax (VAT) waiver on petroleum products remains in place and has not been withdrawn.
It further noted that 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The government further clarified that the telecommunications excise duty introduced before 2023 has been repealed under the new tax laws and is therefore no longer applicable.
“Any future tax measures will be announced through official channels and implemented in line with the law”, the statement according to the government of Nigeria.
