In a bid to alleviate the burden of surging diesel prices on Nigerian citizens, President Bola Ahmed Tinubu has taken a significant step by suspending the 7.5 percent value-added tax (VAT) on diesel for a period of six months.
This decision was announced by Mohammed Idris, the Minister of Information and National Orientation, following a crucial meeting between the federal government and organized labour.
The move comes as diesel prices in the country have seen a substantial increase, soaring from ₦600 per litre in early June to ₦1000 per litre.
This escalation has put strain on businesses and households alike, prompting the government to take proactive measures to mitigate its impact.
During the announcement, Minister Idris emphasized the government’s commitment to supporting micro and small-scale enterprises.
In addition to the VAT suspension, the federal government pledged to provide financial aid to these vital economic contributors.
This decision is part of the resolutions reached during an emergency meeting convened to avert the planned indefinite strike scheduled for October 3.
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The dialogue between the federal government and organized labour reflects a concerted effort to address pressing economic concerns and foster a more inclusive and sustainable financial landscape for all Nigerians.
President Tinubu’s decision to suspend VAT on diesel underscores the government’s dedication to prioritizing the welfare and economic well-being of its citizens.
This measure is expected to bring relief to businesses and households grappling with the challenges posed by escalating fuel costs, fostering an environment conducive to economic growth and stability.