Liquefied petroleum gas (LPG) dealers under the aegis of Nigeria Liquefied Petroleum Gas Association (NLPGA) have rejected moves by the Petroleum Product Pricing Regulatory Agency (PPPRA), to impose N2.5 billion ‘Administration Tax’ on LPG.
In a statement obtained by journalists, the Executive Secretary, NLPGA, Mr. Olakunle Oyebanjo, stated; “Earlier this year, following a 10-year battle by NLPGA, the Federal Inland Revenue Service (FIRS), finally conceded to removing Value Added Tax (VAT), from LPG – domestic cooking gas.
“The VAT burden at the time was worth N1 billion annually and was removed in an effort to support the Federal Government’s stated objective to deepen the adoption of gas as a clean fuel for cooking in Nigeria.
“LPG has over the last 10 years been a fully deregulated petroleum product and as such, the PPPRA, being a price regulatory agency, has no business whatsoever with LPG.
“Yet, before the industry could celebrate, and despite a grand announcement by the Hon. Minister of State for Petroleum Resources, Chief Timipre Sylva, identifying 2020 as the “Year of Gas”, the PPPRA silently imposed a N2.5 billion ‘tax’ on housewives and poor low income earners through the imposition of an ‘Administration Tax’.
Olakunle, who raised many questions, added: “What does PPPRA need N2.5 billion for? If they need money to operate, why did they not get it from the government? Why are housewives, the poor and rural consumers the best source of income for PPPRA? Why is PPPRA blockading terminals from loading out gas? How well did the PPPRA administer subsidies on kerosene under its previous guise of regulation?”
Apparently calling on its members, Olakunle, said, “Say no to PPPRA extortion! Say no to unfair taxes on the poor! Say no to re-regulation of LPG through the backdoor.”