Naira Hits All Time Low At Interbank Market

The Petroleum Products Pricing
Regulatory Agency (PPPRA) says
that taxation of petroleum
products like fuel, diesel,
kerosenrevenue 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.
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