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The Federal Inland Revenue Service (FIRS) has issued a letter to diesel suppliers in Nigeria, informing them that they are now required to pay value-added tax (VAT) on imported diesel.
The VAT Modification Order 2021 exempts certain petroleum products from VAT, but diesel falls outside the exempted category and is subject to VAT.
Diesel suppliers have expressed concerns over the new directive, stating that it will increase their business costs, affect profit margins, and have a negative impact on customers, inflation, and the overall economy.
The Federal Inland Revenue Service (FIRS) has issued a letter to diesel suppliers in Nigeria, informing them that they are required to pay value-added tax (VAT) on automobile gas oil (AGO) or diesel imported into the country.
The letter was forwarded by the Assistant Comptroller-General of Tariff and Trade, MBA Musa IN, on behalf of the Deputy Comptroller-General of Tariff and Trade to diesel suppliers.
Nairametrics obtained a copy of the letter, which was dated June 8th, 2023, and addressed to diesel suppliers. It cited an FIRS letter dated 31st May 2023.
Peoplesmind
