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August 9, 2023

Subsidy removal: VAT should be suspended on Diesel –  Presidential Tax C’mttee Chair, Oyedele

Subsidy removal: VAT should be suspended on Diesel –  Presidential Tax C’mttee Chair, Oyedele

The Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, said Value Added Tax (VAT) should be suspended on diesel to cushion the economic impact of the removal of fuel subsidy.

Oyedele stated this while  on Channels Television’s Sunrise Daily breakfast programme on Wednesday.

He said, “What the President wants us to do is that within the first 30 days, there are those low-hanging fruits that people have generally agreed that this is a problem but nobody has done anything about it.

“Personally, for example, this is not promising that it would be done. I think that we should suspend VAT on diesel because we removed fuel subsidy on petrol and prices are going up.

“We are going to table it before the committee. These are the things we want to do in the first 30 days.”

Oyedele, a former Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC), within the next six months, said the committee will actualise critical tax reforms, rewrite and harmonise tax laws, issue executive orders, roll out regulations, amongst others.

He said the committee, which was inaugurated by President Bola Tinubu on Tuesday in Abuja, has one year for the implementation of its policies but noted that the 30 days, six months and one year periods run concurrently.

Oyedele added that the Federal Inland Revenue Service (FIRS) is best suited to collect revenue for ministries, department and agencies.

He said the presidential committee would look into excess bank charges, adding that businesses pay as high as 65 to 70 levies and taxes but the committee’s plan is to reduce the number of taxes to about 10.