NCS urges FG to reintroduce suspended importation tax on petroleum products
The Nigerian Customs Service (NCS) has urged the federal government to reintroduce the suspended importation tax on petroleum products. The Comptroller-General of Customs, Col Hameed Ali while speaking at the 2020 budget defence before the House of Representatives Committee on Customs stated that it has become important to reintroduce the tax regime in line with global best practices.
The reason for the government to consider the tax regime reintroduction according to the Customs boss is that currently, the same type of tax is being implemented in about 36 countries at an average of $2.24 per gallon. Ali added, “The petroleum tax regime of 2004 before its suspension, imposed N1.50 per litre. It is the considered opinion of the service that this regime be reintroduced in line with international best practices as it’s currently operational in over 36 countries at an average of $2.24 per gallon.”
It can be recalled that the tax on imported petroleum products was suspended in 2014. Prior to its suspension, fuel importers paid a tax of N1.50 per litre on any petroleum product.