Nigerians have begun to protest the consequences of the 7.5% Value-Added Tax on the price of premium motor spirit, also known as petrol.
This comes just a month after President Bola Tinubu revoked the petrol subsidy during his inaugural speech on May 29, boosting the price of PMS from N188 to around N580 in several federation states.
Remember that the Minister of Finance, Budget, and National Planning, Zainab Ahmed, said that the Finance Act 2020 increased the country’s previous 5% VAT to 7.5% on commodities such as automobiles, gas, and oil, and that it went into effect on February 20, 2020.
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.
But the new development has deeply affected Nigerians, who have demanded a thorough assessment of it, particularly in light of the recent elimination of fuel subsidies.
See reactions below:
A user, Ingawa said, “That means for every litre of AGO you will buy, you have to pay 7.5% Consumer Tax (VAT) of the Pump Price. For example; If 1 litre of AGO is N650 at the filling station, then you have to pay an additional N48.75 being payment for 7.5% VAT. The total price per litre will be N698.75 per litre.”
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.
