Nigerians Voice Concerns as Petrol Prices Soar with 7.5% VAT Introduction
Nigerians across the country are expressing their worries and frustrations over the recent introduction of a 7.5% Value-Added Tax (VAT) on petrol, also known as premium motor spirit.
This development comes just a month after President Bola Tinubu‘s announcement to remove the fuel subsidy during his inaugural speech on May 29, resulting in a significant price hike from N188 to around N580 in different states.
The Finance Act 2020, which took effect on February 20, 2020, raised the country's VAT from 5% to 7.5% on various commodities, including automobile gas oil. While items like honey, bread, cereals, cooking oils, and more remain exempt from VAT, petrol was not spared as it was previously subsidized by the government.
The impact of this VAT implementation is hitting Nigerians hard, particularly in light of the recent removal of fuel subsidies. Many citizens are calling for a thorough review of this situation, as they face increased financial burdens and struggle to cope with rising petrol prices.