7.5% VAT On Fuel Prices: Nigerians Lament Tinubu Gov’t Policies, Ask For Review

President Bola Ahmed Tinubu’s administration has come under criticism following the introduction of a 7.5 per cent Value-Added Tax on the price of Premium Motor Spirit (PMS), otherwise known as petrol.

Naija News reports that Nigerians have begun to lament the effects of tax, which is coming barely a month after the federal government announced the removal of subsidy on petrol.

Recall that Tinubu, while delivering his inaugural speech on May 29, announced an end to the fuel subsidy regime. The development raised the price of PMS from N188 to about N530-N580 across different states.

Earlier, former Minister of Finance, Budget and National Planning under President Muhammadu Buhari’s government, Zainab Ahmed, announced that the Finance Act 2020 raised the previous 5 per cent VAT of the country to 7.5 per cent on commodities, including automobile gas oil, and it was implemented on February 20, 2020.

But the VAT-exempt items include honey, bread, cereals, cooking oils, culinary herbs, fish, flour, starch, fruits, meat, poultry, milk, nuts, pulses, roots, salt, vegetables, water, sanitary pads, tampons, tertiary, secondary, primary and nursery tuition.

Naija News understands that while other commodities have been VAT-compliant, PMS was not until recently because the Federal Government was subsidizing it.

Nigerians have been reacting differently to the latest development as many citizens are calling for an utmost review of the tax.

See some of the reactions below:

@2020Kbol – Lawmakers should revisit this issue. There should not be VAT on pms, but states should be allowed to tax pms consumption within their boundaries. N5 tax per litre would be ok for a state like Lagos to develop its mass transit system. Oyo could decide to make its own N7 per litre.

@trueAFICIONADO – He removes the subsidy and even adds more taxes to your wàhálà. You will soon understand why
@officialABAT and overtaxing are inseparable sesame twins. Buhari pro max government, it was a promise.

@Olugbileol – Ok!!!! Now I understand! I visited Fuel Feeling Station yesterday; he sold for me @ #530/ Ltr instead of the usual #500/Ltr! So, 7.5% VAT has been implemented with immediate effect!! And our income still remains the same ooo! God dey!!

@EbukaNw82866148 – To even think that some spoony folks are supporting this administration is weird. APC is out to destroy whatever is left of Buhari’s ruin and people are urging him on. Make una continue o…

@ezirim_jude – Subsidy was suddenly removed without palliatives or immediate intervention to cushion the effect. The people were silent, adjusted and are yet to recover.

Now, there is a recent addition of 7.5% Vat on petrol prices. By July 1st, there will be 40% increase in the electricity tariff.

@aai_austin – “The supposed 7.5% VAT on petrol shouldn’t be a problem for anyone who voted the APC”. Oh yeah!

Tinubu has all his political life been a rent-seeking landlord. No innovation no new ideas just fvxk!ng tax the hell out of the people.

“This man won’t allow the poor breeeeeethe. Singers go turn wailers soon, time will get you there. Just chill first”.