FG Clears Air on Rumoured Telecoms, Fuel Tax Hike

The Federal Government has come out to debunk reports circulating in the media about plans to introduce new taxes on telecommunications services and petroleum products. This clarification comes on the heels of the International Monetary Fund (IMF) Article IV Consultation Report on Nigeria, which some media outlets misinterpreted as indicating the government's intention to impose these taxes. In a statement issued by Efe Ovuakporie, Head of Information and Public Relations Unit at the Ministry of Finance, the government explained that the IMF report merely contains recommendations for consideration and does not reflect the government's policy direction. The statement emphasized that decisions on tax matters are made through constitutional and legislative processes, taking into account national priorities and economic realities. It was also made clear that the Value Added Tax (VAT) waiver on petroleum products remains in effect and has not been withdrawn. Furthermore, the government noted that while existing legislation provides for a fuel surcharge, such a measure can only be implemented through a ministerial order and publication in the Official Gazette, a process that is not currently being considered. The continued suspension of these charges has helped mitigate the impact of global energy price fluctuations on households and businesses, keeping domestic fuel prices relatively stable. Additionally, the government clarified that the telecommunications excise duty introduced prior to 2023 has been repealed under new tax laws and is no longer applicable. Reports suggesting that new taxes are being planned for telecommunications services or petroleum products were dismissed as unfounded and should be disregarded. The government assured that any future tax measures would be announced through official channels and implemented in accordance with the law.