- The Nigerian government has announced the temporary removal of Value Added Tax (VAT) on diesel for the next six months.
- The waiver is a response to the impact of the removal of petroleum subsidy in the country.
- The decision was reached during a meeting between the government delegation and labor unions.
- VAT is a consumption tax administered by the Federal Inland Revenue Service (FIRS).
- VAT on diesel was previously implemented at a rate of 7.5%.
- The removal of VAT on diesel is aimed at cushioning the economic effects of the fuel subsidy removal.
- The labor unions had planned to go on strike to protest the removal of subsidy on petrol, but it is uncertain whether the strike will proceed or be suspended.
- President Bola Tinubu has also approved a provisional wage award of N35,000 for federal government workers for six months.
- The government has committed to providing funds for micro and small-scale enterprises and will commence payment of N75,000 to 15 million households for a three-month period.
Source: premiumtimesng.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
