The Federal Government has said that the 5% surcharge on fuel mentioned in the new tax law is not a new tax introduced by President Bola Tinubu’s administration.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, made this known in a tweet on Saturday.
Oyedele said in a statement on Friday that the fuel charge has existed since 2007 under the Federal Roads Maintenance Agency (FERMA) Act.
He explained that it was only added to the new Nigeria Tax Act for clarity and transparency, not to begin right away.
Oyedele stated; “This note seeks to clarify matters arising regarding the 5% fuel surcharge in the new tax laws. The charge is not a new tax introduced by the current administration.
The provision already exists under the Federal Roads Maintenance Agency (Amendment) Act, 2007. Its restatement in the new Tax Act is for harmonisation and transparency rather than immediate implementation.
“No. The surcharge is not new. It already exists under the Federal Roads Maintenance Agency (Amendment) Act, 2007 (FERMA Act). The new Tax Act only restates it for harmonisation and transparency. Hence, it was not part of the original tax reform bills submitted by the president to the National Assembly.”
Some Nigerians have raised concerns that the surcharge will make life harder and increase prices but Oyedele said the money from the charge will be used to fix and maintain roads, which will help reduce travel time, make roads safer, and lower vehicle repair and transport costs.. Oyedele said moving the surcharge from the old FERMA law into the new tax law helps create a better legal system
that can support future needs.
“Yes, the surcharge has been removed from the FERMA Act and incorporated into the new tax laws which are designed to provide a forward-looking legal framework for Nigeria.
