FG Suspends VAT On Diesel For 6 Months

President Bola Tinubu
Adoga Stephen By Adoga Stephen - Editor-In-Chief
2 Min Read

The Federal Government has declared that the value-added tax (VAT) on diesel will be suspended for the next six months.

This was revealed by President Tinubu‘s Chief of Staff, Femi Gbajabiamila, as part of the waivers from the resolution reached between the Federal Government and the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) at the end of a four-hour meeting on Sunday at the State House.

The discussion was held to address the consequences of the elimination of fuel subsidies.

The Presidency issued the following formal statement following the discussion with the NLC and TUC:

The Federal Government, on Sunday, October 1, 2023, met with the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) on measures to address the dispute arising from the removal of subsidy on Premium Motor Spirit (PMS). The parties noted the following:

The Federal Government has announced N25,000 only as a provisional wage increment for all treasury-paid federal government workers for six months.

The Federal Government is committed to fast-tracking the provision of Compressed Natural Gas (CNG) buses to ease public transportation difficulties associated with the removal of PMS subsidy.

The Federal Government commits to the provision of funds for micro and small-scale enterprises.

VAT on diesel will be waived for the next 6 months.

According to the National Bureau of Statistics’ monthly inflation figures, the average retail price of Automotive Gas Oil (Diesel) increased by 8.57%.

In August 2023, consumers paid N854.32 per litre on average, compared to the lower cost of N786.88 per litre reported in the same month the previous year.

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By Adoga Stephen Editor-In-Chief
Stephen studied Mass Communication at the Lagos State Polytechnic, Ikorodu (now Lagos State University of Science and Technology), where he acquired requisite training for the practice of journalism. He loves the media, and his interest mostly lies in print medium, where his creative writing skill makes him a perfect fit.