The Federal Government has been advised to consider collecting taxes on petroleum products which is a goldmine for generating funds.
The Petroleum Products Pricing Regulatory Agency (PPPRA) says that taxation of petroleum products like fuel, diesel, kerosene and gas holds a huge revenue potential for Nigeria.
This is contained in a report PPRA made available to the Ministry of Finance and obtained by newsmen at the conclusion of the two-day National Revenue Retreat in Kano.
According to the Report, PPPRA says the introduction of taxes on petroleum products will supplement the revenue lost due to the fall of oil prices at the international market.
It said the revenue potential from taxation of petroleum products was enormous, given the average national daily consumption of the products. The report from PPPRA showed that the average national daily consumption of fuel was 45 million barrel, diesel nine million barrel and aviation fuel, 1.5 million barrel. The report revealed that there were three different taxes that could be charged which the PPRA’s pricing template did not currently accommodate.
These are Highway Maintenance, Government Tax, Import Tax and Fuel Tax. “Fall in government’s revenue from oil sale receipts and budget deficits in the face of compelling demand has made it imperative that the nation begins to examine the next step in the petroleum downstream business in Nigeria.
“Deregulation remains the key to achieving a self-sustaining downstream sector as well as the stimulation of the economic growth and social wellbeing of the populace.
“Environmental tax, consumption tax, fuel tax, VAT, Import and Excise tax, when included in the final pricing of petroleum products provides opportunities for petroleum products to provide direct funds for other sectors,” it said.
Also, PPPRA made available to the government, the option of privatisation of refineries as another way for revenue generation. It also suggested that the Downstream Logistics Facilities should also be privatised.
Source: Vanguard.