The Petroleum Products Pricing Regulatory Agency has suggested to charge the taxation of petroleum products in Nigeria? Read this article for more!
Due to the fall of international oil prices the Petroleum Products Pricing Regulatory Agency (PPPRA) has made a suggestion to the Federal Government to create taxes on the petrol products as a compensation for the revenue loss.
The PPPRA claims that taxation of petrol products like kerosene, gas, fuel and diesel has a huge potential for Nigeria. at the conclusion of the two-day National Revenue Retreat in Kano, the PPPRA noticed that depending on average Nigeria’s daily petrol products consumption the revenues were enormous. Their reports demonstrate that average national daily consumption of fuel was 45 million barrel, 9 million barrel of diesel and 1.5 million barrel of aviation fuel.
PPPRA claimed that there were 3- types of petroleum taxes that could be charged. The PPPRA’s pricing template was not able to accommodate at that moment. These were highway maintenance, government tax, import tax and fuel tax. Also, the PPPRA’s reports showed that the government revenue falls from selling the oil and government budget deficits were caused because of compelling demands. It all has made it very essential that the people of Nigeria are ought to begin to examine new steps in the country’s petroleum downstream business.
Creating new taxes has target to achieve a self-sustaining downstream sector and the economic growth’s stimulation and raising the level of the social welfare across the country.
The next taxes are going to be included to the final petroleum pricing: environmental tax, consumption tax, fuel tax, VAT, import and excise tax. It is believed to gain direct funds to other sectors of country.
The PPPRA also claimed that the privatization of downstream logistics facilities and refineries is also the way of the revenue generating.
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