The Chairman of the Presidential Committee on Fiscal Coverage and Tax Reforms, Taiwo Oyedele, states that the proposed 5% gasoline surcharge won’t be carried out till key {economic} situations enhance.
Talking on the Haulage and Logistics Journal Convention and Exhibition in Lagos, Oyedele defined that though the levy is a sound coverage aimed toward funding highway upkeep, introducing it now would additional burden Nigerians already fighting excessive dwelling prices.
He famous that the surcharge, first launched underneath former President Olusegun Obasanjo, was designed to channel a portion of gasoline income to highway repairs, with 40% allotted to federal roads and 60% to state and native authorities roads.
“The thought is good and is already being carried out in additional than 150 international locations,” he mentioned, stating that almost all of Nigeria’s estimated 200,000 kilometres of roads are in poor situation.
He revealed that the Federal Roads Upkeep Company (FERMA) had pushed to start accumulating the levy after gasoline subsidy removing, however the committee rejected the transfer.
“We mentioned no—introducing such a tax now could be insensitive,” he mentioned.
Oyedele defined that whereas the surcharge seems within the draft tax regulation, it can not take impact except the Minister of Finance points an official order, a safeguard constructed into the reform framework.
“For me, the proper time can be when the naira strengthens or crude costs drop, so the surcharge gained’t elevate pump costs,” he mentioned.
He additionally assured stakeholders that the continuing tax reforms will scale back prices within the haulage and logistics sector by eliminating a number of taxation and bettering operational effectivity.
“We’re not introducing new taxes; we’re eradicating duplicated ones that frustrate transporters and inflate costs,” he acknowledged.
Beneath the brand new coverage, small transport and logistics corporations with annual turnover under N100 million can be exempt from firm revenue tax, and eligible operators will obtain VAT refunds and different incentives.
Oyedele added that the reforms purpose to simplify Nigeria’s advanced tax construction and guarantee clear and environment friendly sharing of income throughout all tiers of presidency.