5% fuel surcharge was introduced in 2007 and not by Tinubu’s government — Chairman of tax reform committee, Taiwo Oyedele

5% fuel surcharge was introduced in 2007 and not by Tinubu’s government — Chairman of tax reform committee, Taiwo Oyedele

The Chairman of the Presidential Committee on financial policy and Tax Reforms, Taiwo Oyedele, has clarified that the arguable five% surcharge on gas was now not added by using President Bola Tinubu’s administration however has been in existence on the grounds that 2007.

Oyedele made the disclosure on Tuesday, September 9, at some stage in an interview on Channels tv’s The Morning brief, explaining that the regulation had remained dormant because gasoline was once being subsidised.

“One very important message for humans to understand is that this surcharge was no longer brought by using this authorities. It was once delivered in 2007. and then it was no longer carried out due to the fact the authorities used to be subsidising gasoline,” he stated.

latest reviews suggested that the surcharge, which locations a five% rate on every litre of gasoline purchased, could take impact in January. The improvement prompted backlash from Nigerians, with critics faulting the timing amid growing living charges. Oyedele, but, insisted the degree was now not a part of the original tax reform bills signed into regulation earlier this 12 months.

“even as we had been doing this tax reform, it was now not even inside the unique idea, so it was no longer like the President proposed it to the country wide meeting. but inside the technique of operating on the bills, those troubles got here up, after which the selection was once made that we should not have specific agencies collecting taxes,” he said.

in keeping with him, the law mandates the Federal street upkeep organization (FERMA) to manage the surcharge, with 40% of the revenue going to federal roads and 60% to states. He added that there may be currently no indication that the surcharge will begin in January, contrary to speculations.

the debate has sparked opposition from civil society firms, exchange unions, and the Organised non-public area. The change Union Congress (TUC) has even threatened to embark on strike action if the surcharge is enforced.

Oyedele, but, argued that the surcharge is crucial for the protection of Nigeria’s road network, announcing the advantages will in the long run serve the public.