FIRS Chair Says Government Approved Zero VAT On Imported Petrol

L-R: CLERK OF THE HOUSE AD HOC COMMITTEE ON MONITORING OF THE SUBSIDY REGIME, MR BONIFACE EMENALO, WITH THE COMMITTEE'S CHAIRMAN, HON. FAROUK LAWAN, GOING THROUGH DOCUMENTS AT THE COMMITTEE'S PUBLIC HEARING IN ABUJA ON WEDNESDAY, JANUARY 18, 2012.

ABUJA, FEBRUARY 01, (THEWILL) - Chairman of the Federal Inland Revenue Service (FIRS), Mrs. Ifueko Omogui-Okauru Wednesday disclosed that the tax collection agency does not charge Value Added Tax (VAT) on the Premium Motor Spirit (PMS) and DPK (kerosene) imported into the country; meaning importers of billions of litres of petrol got waivers from government.

Omogui-Okauru, who stated  this at the on-going investigative hearing of the House of Representatives ad hoc Committee on the management of the subsidy regime also disclosed that a revised version of the Value Added Tax (VAT) would soon be presented to the National Assembly.

She explained that it was a policy of the federal government not to charge VAT on Premium Motor Spirit (PMS) and kerosene imported into the country.

According to her, this was deliberate to save Nigerians from paying heavily for the products.  
 
“Government has been very sensitive on the issue of tax on petroleum products which is a major source of revenue,” she said.

The tax czar noted that though PMS and kerosene were taxed in other countries, the Nigerian government was been sympathetic to Nigerians. She promised to forward documents authorising the agency not to charge VAT on petroleum products.

Meanwhile, the managing director of Total Oil Nigeria Plc, Mr. Francois Bussagol, who also appeared before the ad hoc committee yesterday disclosed that the company was paid N11 billion in 2010 for the importation of 251 million litres of petrol. According to him, Total was paid N16 billion in 2011 for importing 211 million of litres.

He explained that the company did not collect any payment on kerosene which it sold at N50 per litre to the public.

Responding to the revelation by the FIRS chairman, the ad hoc committee chairman, Hon. Farouk Lawan (PDP-Kano), directed the FIRS to make available to the committee, all the papers of authorizing oil companies that benefited from the waiver.

He also asked for the details of income and other taxes paid by the companies involved in importation of petroleum products.

Similarly, the committee had requested the Total Oil Nigeria Plc to forward to it, letters of credit, and certificate of discharge and bill of laden from 2006 to date.