The Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, has proposed suspending the Value Added Tax on Automotive Gas Oil, often known as Diesel.
The VAT suspension, according to Oyedele, will mitigate the economic impact of President Bola Tinubu’s decision to eliminate gasoline subsidies.
On Wednesday, October 9th, 2023, Oyedele revealed this on Channels Television’s Sunrise Daily broadcast.
“What the President wants us to do is that within the first 30 days, there are those low-hanging fruits that everyone has agreed are a problem, but nobody has done anything about them,” he added.
“Personally, I’m not optimistic that it will be done, but I believe we should suspend VAT on diesel because we removed the fuel subsidy on petrol and prices are rising.”
Oyedele went on to note that the nation’s fiscal governance includes issues such as the debt ceiling, the deficit-to-GDP ratio (as defined by the Fiscal Responsibility Act), revenue generation reporting, and spending quality.
Many people in the tax net, particularly those in the middle and upper classes, are not in conformity with tax regulations, according to Oyedele, who adds that “some of them are in the tax net with one or two fingers.” In truth, we want to eliminate many of the taxes that make doing business difficult while collecting more.”
He recommended that, in order for the nation’s economy to gain from revenue creation, revenue collection be allocated principally to the Federal Inland Revenue Service, with the responsibility of revenue generation shared by the Federal Government’s Ministries, Departments, and Agencies reduced.