The Federal Government’s decision to eliminate Value Added Tax (VAT) on fuel for a period of six months has been praised by Mr. Clement Isong, the Chief Executive Officer of the Major Oil Marketers Association of Nigeria (MOMAN).The compliment was given by Mr. Clement Isong, the CEO of MOMAN, during an interview with the News Agency of Nigeria (NAN) on Saturday in Lagos.
He claimed that by taking this action, the impact of the loss of subsidies on the Nigerian economy will be lessened.
According to NAN, President Bola Tinubu halted Value Added Tax (VAT) collection on diesel on October 1 for a period of six months, starting in October.
He claims that VAT is a consumer tax and that the price of diesel is entirely decided by market forces.
Isong said that eliminating the VAT on diesel will result in a 7.5% reduction in pricing for customers.
He added that MOMAN supported the government’s initiatives to lessen the hardships brought on by the elimination of gasoline subsidies.
Along with suspending the VAT on diesel, the government is also supporting the conversion of vehicles to compressed natural gas (CNG) and supplying high-capacity CNG buses.
He claimed that this is in line with the government’s objective to promote less expensive alternative fuels, lessen reliance on gasoline, and reduce the rising cost of energy.
“The measures outlined, such as the suspension of VAT on diesel and the provision of high-capacity CNG buses, are some of the steps taken in the right direction to alleviate some of the burdens on consumers and the industry,” Isong continued.
Regarding CNG conversion, the MOMAN boss stated it was a good idea to offer free CNG conversions for automobiles during the initiative’s first stages.
“However, for the sake of quality control, safety, and easier maintenance, we prefer new cars with factory-installed CNG alternatives.
“We emphasize the necessity for technical responsibility where conversion kits are to be used, especially for safety concerns.
He claimed that the government had a chance to act quickly to control rising energy prices at a time when they were exceptionally high.
He claimed that numerous other nations all across the world were carrying out this practice.
Isong stated that MOMAN supports these short-term initiatives, adding that they must be focused, inexpensive, well-planned, time-bound, and have no detrimental long-term effects on the Nigerian economy.
