No new taxes for fuel, telecom – FG

The Federal Government on Wednesday dismissed reports suggesting it had adopted or was considering the introduction of new taxes on telecommunications services and petroleum products following recommendations contained in the latest IMF Article IV Consultation Report on Nigeria.

The government said the reports misrepresented the contents of the IMF report and did not reflect its policy direction, insisting that no new taxes were being planned for either the telecoms or petroleum sectors.

In a statement signed by the Head of Information and Public Relations Unit of the Federal Ministry of Finance, Efe Ovuakporie, the government stressed that recommendations contained in the IMF report were not binding on Nigeria and should not be interpreted as official government policy.

“The government has dismissed reports suggesting that it has adopted or is considering new taxes on telecommunications services and petroleum products following the publication of the International Monetary Fund Article IV Consultation Report on Nigeria,” the statement said.

The clarification comes days after the IMF, in its Article IV report on Nigeria, recommended a range of revenue-enhancing measures as part of efforts to strengthen government revenue and improve fiscal sustainability.

The PUNCH earlier exclusively reported that the IMF recommended introducing taxes on fuel products and telecommunications services in Nigeria as part of broader measures to increase government revenue and create fiscal space for development spending and social interventions.

However, the Federal Government maintained that decisions on taxation could only be made through constitutional and legislative processes and would be guided by national priorities and prevailing economic realities.

According to the ministry, “The IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy as well as recommendations for consideration by the authorities. Those recommendations do not amount to government policy and are not binding on Nigeria.”

It added, “Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities.”

The government also clarified that the Value Added Tax waiver on petroleum products remained in force and had not been withdrawn.

According to the statement, although existing legislation provides for a fuel surcharge, such a measure can only become effective through a ministerial order and publication in the Official Gazette.