Connect with us

News

FG implements 7.5% VAT on diesel, Nigerians kick

Published

on

The Federal Government, on Monday, confirmed that it had commenced the implementation of the payment of 7.5 per cent Value Added Tax on Automotive Gas Oil, popularly called diesel.

Officials of the Nigeria Customs Service and Federal Inland Revenue Service confirmed this in Abuja, stressing that AGO was not exempted from the payment of VAT based on the VAT Modification Order 2021.

The development was, however, condemned by Nigerians, who pointed out that citizens were still trying to adjust to the hike in the pump price of Premium Motor Spirit, popularly called petrol, not knowing that plans had been perfected to further raise payments for diesel.

When asked by our correspondent if the NCS was now collecting 7.5 per cent VAT on the imports of AGO, the spokesperson for the service, Abdullahi Maiwada, replied, “Yes.”

He continued, “If you ask me whether Customs collect 7.5 per cent VAT on AGO, I will tell you yes and I’ll give you the reasons. There’s what we call VAT Modification Order 2021, which exempts petroleum products of Harmonised System Codes.

“But the HS Codes for Petroleum products that are exempted from paying VAT are those in the region of 2709.00.00.00 – 2710.19.12.00. The HS Codes are what we use to classify commodities. But AGO is classified under HS Code 2710.19.21.00, which is not exempted from the payment of VAT. Now, this is based on the VAT Modification Order 2021.”

An official of the FIRS, Tobi Wojuola, also confirmed the development, stressing that it was the position of the VAT Modification Order.

“The position of the VAT Modification Order 2021 is that VAT is chargeable on diesel,” he told our correspondent in Abuja.

In a letter from the NCS to some of its personnel, on the matter, with reference: NCS/T&T/T/899/217/VOL.I, sighted in Abuja, and dated June 8, 2023, the service made it clear that VAT must be paid on diesel.

The letter was signed by the Assistant Comptroller-General (Tariff and Trade), Mba Musa, on behalf of the Deputy Comptroller-General (Taritf and Trade).

It read in part, “I am directed to forward a letter from Federal Inland Revenue Service on the above subject matter. The VAT Modification order 2021 only exempts petroleum products of HS codes 2709.00.00.00 – 2710.19.12.00 from payment of VAT. AGO or diesel falls classifiable under HS Code 2710.19.21.00 and is not exempted from paying VAT.

“Subsequent upon the above, all future importations of the product should assess and pay VAT at the point of entry into the country. Also note that AGO or diesel are not exempted from destination inspection or import guidelines and as such are expected to process Form M and PAAR as well as make declarations appropriately in the NICIS II system.

News

MC Oluomo Elected NURTW National President

Published

on

Musiliu Akinsanya, better known as MC Oluomo, has been elected as the new National President of the National Union of Road Transport Workers (NURTW) following a unanimous decision at the Union’s Quadrennial Delegate Conference on Saturday.

Akinsanya, who was the only candidate for the position, was chosen during the election held at the NURTW Zonal Secretariat along the Osogbo/Ikirun road.

Delegates from the Southwest states—Lagos, Ogun, Ondo, and Ekiti—participated in the election process.

The conference, observed by the acting National President of the NURTW, Aliyu Issa-Ore, was an important moment for the Union.

In his address, Issa-Ore clarified that the Union’s constitution grants the zone responsible for filling the national president’s role the authority to elect their candidate and submit them to the national body.

Represented by Mrs. Adedamola Salam, Head of Finance at the Union’s National Headquarters in Abuja, Issa-Ore added, “The Southwest zone has fully complied with the Constitution in electing Oluomo as President.”

Akinsanya, in his remarks, extended a message of reconciliation, saying, “I have forgiven everyone who has offended me, and I hope those I have offended will forgive me as well.

This is our union, and we must be committed to preserving it. We will not allow anyone to destroy our means of livelihood.”

Additionally, Tajudeen Agbede was elected as Vice President for the Southwest, and Akeem Adeosun was chosen as a Trustee from the zone.

After taking the oath of office, Akinsanya, surrounded by family and supporters, called for unity and peace among members, pledging to work tirelessly to strengthen the Union.

ROAMAN NEWS

Continue Reading

News

Okonjo-Iweala Faces No Opposition for WTO Second Term

Published

on

Ngozi Okonjo-Iweala, the first woman and the first African to lead the World Trade Organization (WTO), is poised to secure a second term as Director-General without facing any opposition.

Norwegian Ambassador Petter Olberg, who chairs the WTO, announced on Saturday that “no further nominations for the position” had been received by the deadline on Friday, making Okonjo-Iweala the “only candidate for the role.”

The 70-year-old economist first expressed her intention to seek reappointment in September. Her current term, which began in March 2021, is set to end in August 2025.

The selection of the WTO’s Director-General is based on consensus among the organization’s 166 member countries, a process Okonjo-Iweala successfully navigated despite early challenges.

Her initial bid for the position faced resistance, particularly from former U.S. President Donald Trump, who supported a South Korean contender.

However, with President Joe Biden’s arrival in the White House, the opposition was lifted, clearing the way for her historic appointment.

Since assuming office, Okonjo-Iweala has worked to revitalize the WTO, an organization that has faced criticism for its bureaucratic inefficiencies and slow decision-making.

ROAMAN NEWS

Continue Reading

Latest News

Copyright © 2017 RoamanNews