Currently, the same type of tax was being implemented in about 36 countries at an average of $2.24 per gallon.
The Nigeria Customs Service has proposed that the import tax on petroleum products be reintroduced.
Disclosing this at the 2020 budget defence before the House of Representatives Committee on Customs, Comptroller-General of the agency, Col. Hameed Ali, said that it had become imperative to reintroduce the tax regime in line with global best practices.
Recall that the Federal Government had in 2004 suspended tax on imported petroleum products.
Before the suspension, a tax of N1.50 per litre of any petroleum product was paid by importers of fuel.
Ali noted that currently, the same type of tax was being implemented in about 36 countries at an average of $2.24 per gallon.
He said, “The petroleum tax regime of 2004 before its suspension imposed N1.50 per litre.
“It is the considered opinion of the Service that this regime be reintroduced in line with international best practices as it’s currently operational in over 36 countries at an average of $2.24 per gallon.”
Further disclosing that he had forwarded a proposal for the downward review of vehicle tariff to the Finance Ministry for consideration, the customs boss said that the service was proposing that duty on imported vehicles should remain at 35 per cent while the levy be reduced to between five and 10 per cent.