DAILY POST
For many Nigerians, the first 22 days of President Bola Ahmed Tinubu’s administration have been ‘bitter-sweet.’
His quick-fire decisions, hailed by many variously as “bold,” “decisive,” and “correct,” are not without attendant effects that are grim and gruelling for the average Nigerian.
For instance, the price of Premium Motor Spirit (PMS) has soared following the removal of fuel subsidy. Recently, there has been speculation of an impending Value Added Tax (VAT) on PMS. An electricity tariff increment scheduled for July 1 has further unsettled Nigerians.
The development comes as Nigerians grapple with the harsh economic realities brought about by the removal of fuel subsidy.
Two popular social media influencers, Kelvin Odanz and Daniel Regha summed up the sentiment of most Nigerians.
“Fuel subsidy is gone; education subsidy is gone; VAT introduced for diesel, that would drive its price up and affect the cost of goods in the market. Electricity subsidy is about to go off. All these within one month. Too fast. Too much. Nigerians are suffering. We are being suffocated,” Kelvin Odanz tweeted on Monday.
Daniel Regha bluntly averred that the current government’s policies were not favourable to the masses.
“Tinubu meeting Bill Gates and Dangote in the presidential villa shouldn’t be news. The visit is making headlines, but what has this administration done that favours the masses? From removing fuel subsidies to reportedly planning an increase in electricity tariffs. It’s never about us,” he wrote on Twitter on Monday.
Nigerians, wary of further economic woes that could drive up inflation, are particularly apprehensive about the rumoured tax on PMS.
In an exclusive interview with DAILY POST on Monday, Taiwo Oyedele, Fiscal Policy Partner and Africa Tax Leader at PricewaterhouseCoopers (PwC) explained the nitty gritty of the 7.5% VAT introduced by the past administration of President Muhammadu Buhari.
“The VAT Modification Order 2021 issued by the last administration limited VAT exemption on petroleum products to aviation turbine kerosene, PMS, household kerosene, locally produced liquefied petroleum gas and crude petroleum oils. This effectively means that only diesel is liable to VAT at 7.5%, which the authority now seems to be implementing,” he stated…
