FG Denies New Telecom and Fuel Tax Plans as Confusion Over IMF Report Sparks Nationwide Debate

(Fuel Taxes. Photo by Arise News)

The Federal Government has rejected reports claiming it intends to introduce new taxes on telecommunications services and petroleum products, describing such claims as misleading and out of step with its current policy direction.

In a statement issued on Tuesday, the government noted that recent media reports linking proposed tax measures to recommendations contained in the International Monetary Fund's Article IV Consultation Report on Nigeria had misrepresented its actual position.

The statement, signed by Maryann Duke, Senior Special Assistant on Communications and Press Secretary to the Minister of Finance and Coordinating Minister of the Economy, clarified that the government is not contemplating any new taxes on telecom services or petroleum products, stressing that such claims do not reflect government policy.

It explained that the IMF report merely contains policy assessments and recommendations for consideration, and does not amount to binding decisions on Nigeria.

The government emphasised that all fiscal policy decisions must go through constitutional, legislative, and institutional processes, and must align with national priorities and prevailing economic conditions.

On the issue of petroleum products, the government clarified that the Value Added Tax waiver currently applicable to fuel remains in effect and has not been withdrawn.

It also explained that although existing law allows for a fuel surcharge, such a measure can only be activated through a specific ministerial order published in the Official Gazette, adding that no such step is currently being considered.

The government further stated that sustaining the suspension of certain fuel-related taxes has helped keep domestic fuel prices stable, shielding households and businesses from the effects of global energy market disruptions.

Regarding telecommunications, the statement clarified that the excise duty on telecom services introduced before 2023 has since been repealed under Nigeria's new tax laws and no longer applies.

The government therefore urged members of the public, businesses, media organisations, and other stakeholders to disregard reports suggesting that new taxes on telecom services or fuel products are being planned.

Reaffirming its commitment to economic reforms, the government maintained that its focus remains on strengthening revenue administration, expanding economic activity, reducing inefficiencies, and creating a more investment-friendly environment, rather than increasing the tax burden on citizens.