Buhari Regime Re-imposes Tax On Cooking Gas As Cylinder Cost Nears N10,000

The Nigerian Association of Liquefied Petroleum Gas Marketers has described as unlucky, the re-imposition of value-added tax on cooking gasoline, warning that Nigerians could need to pay as much as N10,000 to purchase a cylinder of cooking gasoline.

NALPGAM’s Executive Secretary, Bassey Essien, on Wednesday requested the President Muhammadu Buhari’s regime to rethink the imposition of VAT on imported LPG within the nation.

Buhari Regime Re-imposes Tax On Cooking Gas As Cylinder Cost Nears N10,000 2

In 2019, the Buhari regime introduced the removing of VAT on LPG, also called cooking gasoline, as a technique to improve its home utilisation.

According to Essien, a reintroduction of the coverage would additional improve the costs of cooking gasoline throughout the nation.

The News Agency of Nigeria quoted him as saying, “It is unfortunate that the Federal Inland Revenue Service and the Federal Ministry of Finance have gone to resuscitate a product that has been exempted and put into gazette from VAT. This was put into gazette in 2019 and has encouraged domestic gas utilisation.

“Nigerians are already complaining about the prices of cooking gas across the country, and this would further worsen the situation.”

He suggested that the federal government ought to contemplate the affect the reintroduction of VAT on the importation of LPG would have within the nation amid its efforts to increase its income base.

“However, this goal will be defeated if cooking gas goes out of the reach of ordinary Nigerians due to the current increment in prices of the commodity.”

He talked about that the worth of a 12.5kg cylinder of cooking gasoline price about N6,500, offered “for about N4,000 averagely a few months back.”

He additionally famous that a couple of million metric tonnes of gasoline have been consumed by Nigerians in 2020, with about 60 per cent of the product imported by entrepreneurs.

“We import to augment the 350,000MT allocated to the domestic market by the Nigerian LNG Company Limited.”

Essien insisted that charging VAT on LPG “simply means that Nigerians will pay more, and if we go on this route, the price of 12.5kg might hit N10,000 in some parts of the country by December.”

He famous that some cooking gasoline customers have been regularly reverting to utilizing kerosene stoves and firewood with the attendant well being implications.

However, the director of the Department of Petroleum Resources, Sarki Auwalu stated the federal government reimposed VAT on imported LPG to draw investments to native gasoline manufacturing.

“I wouldn’t like us to be importing LPG. This is a country that has over 600TCF of gas. We have proven reserves of 206TC.”

According to him, eradicating 7.5 per cent VAT on LPG importation discourages potential buyers within the upstream sector, which transcends to double losses for the federal government.

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Buhari Regime Re-imposes Tax On Cooking Gas As Cylinder Cost Nears N10,000

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