FG Rejects Claims of Fresh VAT on Fuel, Telecom Service Charges

The Federal Government has dismissed reports suggesting that it is considering the introduction of new taxes on telecommunications services and petroleum products following the release of the International Monetary Fund (IMF) Article IV Consultation Report on Nigeria.

The clarification comes amid media reports claiming that the IMF recommended extending Value Added Tax (VAT) to petroleum products and introducing excise duties on telecommunications services as part of measures to boost government revenue and finance development programmes.

In a statement issued on Wednesday by the Head of the Information and Public Relations Unit of the Federal Ministry of Finance, Mr Efe Ovuakporie, the government said the reports misrepresented the contents of the IMF report and did not reflect the policy direction of the Nigerian authorities.

According to the ministry, the IMF Article IV Consultation Report contains the Fund’s independent assessment of Nigeria’s economy and a set of recommendations for consideration by policymakers, but such recommendations do not automatically translate into government policy.

“The IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy as well as recommendations for consideration by the authorities,” the statement said.

“Those recommendations do not amount to government policy and are not binding on Nigeria. Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities.”

The ministry specifically clarified that the VAT waiver currently applicable to petroleum products remains in force and has not been withdrawn.

It further explained that although existing legislation provides for the possibility of a fuel surcharge, such a measure can only become operational through a ministerial order and formal publication in the Official Gazette.

“No such process is under consideration,” the ministry stated.

According to the government, the continued suspension of these charges has helped cushion the impact of global energy price fluctuations on households and businesses while contributing to relative stability in domestic fuel prices.

The government also addressed concerns surrounding telecommunications taxation, noting that the excise duty previously imposed on telecom services had already been repealed under recently enacted tax laws and is no longer applicable.

As a result, it stressed that reports suggesting fresh taxes are being planned for telecommunications services or petroleum products are inaccurate and should be disregarded.

The Federal Government reiterated its commitment to economic reforms aimed at stimulating growth, improving revenue administration, attracting investment and creating jobs without placing additional financial pressure on citizens.

According to the ministry, the focus remains on expanding economic activity, eliminating revenue leakages and improving efficiency across government institutions rather than introducing new tax burdens.

“The emphasis remains on expanding economic activity, plugging leakages and improving efficiency rather than placing additional tax burdens on citizens,” the statement added.

The government assured Nigerians that any future tax measures would be publicly announced through official channels and implemented strictly in accordance with the law.