In a recent address, Taiwo Oyedele, the head of the Presidential Committee on Fiscal Policy and Tax Reforms, revealed that the federal government is exploring eliminating the Value Added Tax applied to diesel purchases. This strategic move aims to alleviate the escalating costs of products and services.
During the formal launch of the tax committee at the Villa on Tuesday, Oyedele articulated this notion. He underscored the administration’s commitment to augmenting revenue streams without introducing novel taxation methods.
Furthermore, Oyedele highlighted that President Bola Ahmed Tinubu’s government is contemplating methods to alleviate pressure on the Naira. This could involve discontinuing paying taxes and levies in foreign currencies.
Oyedele emphasized that the execution of the tax committee’s reform initiatives, which encompass enacting legislation to stimulate employment prospects in the digital sector for the burgeoning youth population, is set to commence within 12 months.
“…These prevailing challenges allow us to generate revenue sans the imposition of new taxes. We can promptly address our most urgent requirements, including measures to mitigate the impact of price hikes (for instance, the suspension of VAT on diesel).
Additionally, we can alleviate strain on the Naira (by discontinuing the payment of taxes and levies in foreign currencies). We intend to amend existing laws to foster remote work opportunities, thereby nurturing employment expansion within the digital economy, particularly among our youth,” he conveyed.