Nigerians have started to complain about the consequences of the 7.5% Value-Added Tax on the cost of premium motor spirit, also known as gasoline.
This occurs just a month after President Bola Tinubu, in his inaugural speech on May 29, abolished the subsidy on gasoline, increasing the price of PMS from N188 to over N580 in various states of the federation.
Remember how Zainab Ahmed, the Minister of Finance, Budget, and National Planning, said that on February 20, 2020, the Finance Act 2020 went into effect and increased the country’s formerly 5% VAT to 7.5% on commodities, including gasoline.
Honey, bread, cereals, cooking oils, culinary herbs, fish, flour, starch, fruits, meat, poultry, milk, nuts, pulses, roots, salt, vegetables, water, sanitary pads, tampons, and tertiary, secondary, elementary, and nursery tuition are among the commodities that are not subject to sales tax.
Because it was receiving federal government subsidies, PMS was not previously VAT-compliant while other commodities were.
However, the new development has deeply affected Nigerians, as many have demanded a thorough assessment of it, particularly in light of the departure of fuel subsidies.
A user, Ingawa said, “That means for every liter of AGO you will buy, you have to pay 7.5% Consumer Tax (VAT) of the Pump Price. For example; If 1 liter of AGO is N650 at the filling station, then you have to pay an additional N48.75 as payment for 7.5% VAT. The total price per liter will be N698.75 per liter.”
Another user, Angry Non-Nigerian, said, “When Tinubu said ‘widen the tax net, you people thought he was joking. The only thing that man knows is tax, tax and tax. As Lagosians.”
One Oyo said, “The Citizens will be the main IGR for this government. There is no single move to cut the cost of government from the Senate to the House to other departments. They went to education first by trying to add tuition fees, now 7.5% VAT on PMS. Everything directly to the common man.”
Akwa Ibom 1st son opined, “So after the removal of subsidy and the price of fuel jumped to 530, they’ve now decided to add 7.5%. VAT on AGO. In all of these, what are the politicians losing, and what are they sacrificing?”
“7.5% VAT on diesel after subsidy on petrol was removed? They will show you people shege banza pro max air 2. The government is after our lives bro!.
“Even those that were shouting ‘Akanbi’ will not be left out. They might even end up being the most affected. The evil will go round. I swear!
“Good governance is not attained by wishful thoughts, things don’t work that way. Now, Tinubu is going for a check-up after ruining the economy with senseless policies.
“His supporters have been crying since last week because the pressure is going around. We must all learn a lesson,” Madu Obi wrote.
