7.5% VAT on diesel may disrupt fuel supply – NARTO

The Nigerian Association of Road Transport Owners, on Tuesday, called on the Federal Government to stop the 7.5 per cent Value Added Tax on Automotive Gas Oil, popularly known as diesel.NARTO said the halt of VAT on diesel had become fundamental in order to avert disruptions in the distribution and supply of Premium Motor Spirit, popularly known as petrol.

The association said diesel is the product required for fueling about 90 per cent of the haulage trucks that convey PMS from depots located mostly in the South, to various filling stations across the country.It observed that prior to the introduction of VAT on diesel, the cost of the commodity was barely above N600/litre, but had increased to almost N1,000/litre currently. This, it said, had also raised the cost of transporting PMS by transporters.On June 20, 2023,

It was exclusively reported that the Federal Government confirmed that it had commenced the implementation of the payment of 7.5 per cent VAT on diesel.Officials of the Nigeria Customs Service and Federal Inland Revenue Service had confirmed this to our correspondent, and noted that diesel was not exempted from the payment of VAT based on the VAT Modification Order 2021.Commenting on the development in a statement issued in Abuja on Tuesday, the National President, NARTO, Yusuf Othman, said despite the high cost of operations in the downstream arm of the oil sector, the government had stopped increasing the pump price of PMS. It was exclusively reported that the Federal Government confirmed that it had commenced the implementation of the payment of 7.5 per cent VAT on diesel.

Officials of the Nigeria Customs Service and Federal Inland Revenue Service had confirmed this to our correspondent, and noted that diesel was not exempted from the payment of VAT based on the VAT Modification Order 2021.Commenting on the development in a statement issued in Abuja on Tuesday, the National President, NARTO, Yusuf Othman, said despite the high cost of operations in the downstream arm of the oil sector, the government had stopped increasing the pump price of PMS