Fuel tax won’t begin until naira appreciates, oil price falls — Oyedele

Chairman of the Presidential Committee connected Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has said the projected 5% substance surcharge (tax) volition not beryllium implemented until determination is simply a important betterment successful cardinal economical indicators, peculiarly an appreciation of the naira oregon a autumn successful planetary crude lipid prices.

Speaking astatine the Haulage and Logistics Magazine Conference & Exhibition successful Lagos yesterday, helium noted that portion the surcharge is simply a dependable argumentation designed to money roadworthy maintenance, introducing it present would worsen the fiscal strain connected Nigerians.

According to him, the surcharge which was archetypal introduced nether the ex-president Olusegun Obasanjo administration, was intended to dedicate portion of substance revenues to roadworthy repairs — 40% for national roads and 60% for states and section governments roads.

“The thought is superb and already being implemented successful much than 150 countries,” Oyedele said, adding that astir of Nigeria’s 200,000 kilometres of roads are successful mediocre condition.

He clarified that though the Federal Roads Maintenance Agency (FERMA) had requested to commencement collecting the levy aft substance subsidy removal, the committee rejected the move.

“We said nary – introducing specified a taxation present would beryllium insensitive,” helium stated.

The Committee, helium added, included the surcharge successful the draught taxation instrumentality but with safeguards requiring the Minister of Finance to contented an authoritative bid earlier it takes effect.

“For me, the close clip volition beryllium erstwhile the naira strengthens oregon crude prices drop, truthful the surcharge won’t rise pump prices,” helium said.

Oyedele besides assured that the ongoing taxation reforms would present important alleviation to the haulage and logistics assemblage by eliminating aggregate taxation, reducing costs, and improving efficiency.

“We are not introducing caller taxes; we are removing the galore duplicated ones that frustrate transporters and summation prices,” helium said.

He explained that nether the caller policy, tiny transport and logistics businesses with yearly turnover beneath N100 cardinal volition beryllium exempt from institution income tax, portion eligible operators volition payment from VAT refunds and taxation incentives.

Oyedele added that the reforms volition simplify Nigeria’s analyzable taxation strategy and guarantee that each collections are transparent and efficiently shared crossed each levels of government.