The Nigeria Customs Service (NCS) says it has commenced the
implementation of value-added tax (VAT) on automobile gas oil (AGO), also known
as diesel, imported into the country.
The service made this known in a memo, dated July 28, 2023,
sent to all importers and agents of diesel.
The memo was titled, ‘Request for Charge of Value Added Tax
(VAT) on Autombile Gas Oil (ago) or Diesel Imported into the Country’.
The communication, signed by PC Chibuoke (DC admin) on behalf of the area controller, Area I, Port Harcourt; made reference to a “headquarters circular No. NCS/T&T/T/899/217/VOL.I of 27 July 2023 on the above subject matter”.
“I am directed to
inform you that henceforth, Value Added Tax (VAT) is to be charged on
Automobile Gas Oil (AGO), and Procedure Code 4900 000 shall be used on all
importations of AGO,” the memo reads.
The service added that no importer of diesel is allowed to
use “additional Code 409 in their declaration”.
In 2020, the federal government began the implementation of
the Finance Act, which stated that a 7.5 percent VAT would be charged on diesel
costs.
The development means that the price of diesel, which has
been surging, may reach unprecedented highs — further worsening the plight of
Nigerians and manufacturers.
In July 2023, the price of a litre of the product increased
to N794.48 a litre, compared to N774.38 per litre in the corresponding period
last year, according to the National Bureau of Statistics (NBS).
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May we live up to 2027. God's willing we will vote him out and try anyone that will bring relief to the poor excluding obi and atiku because they all promise to remove subsidy in thier campaign.
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