Recent media reports had claimed that the IMF recommended that Nigeria expand Value Added Tax (VAT) to cover fuel products and impose excise duties on telecommunications services as part of efforts to boost revenue for development and social programmes.
However, the government said such reports misrepresented the contents of the IMF report and do not reflect its current policy direction.
This was contained in a statement issued on Wednesday by Efe Ovuakporie, Head of the Information and Public Relations Unit at the Ministry of Finance.
According to the statement, “The IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy as well as recommendations for consideration by the authorities.
“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 Federal Government further explained that the VAT waiver currently granted on petroleum products remains in force and has not been removed.
It also clarified that although existing laws provide for a fuel surcharge, such a policy can only be implemented through a ministerial order and publication in the Official Gazette.
“No such process is under consideration.
“The continued suspension of these charges has helped cushion the effect of global energy price fluctuations on households and businesses while keeping domestic fuel prices relatively stable”.
The government also stated that the telecommunications excise duty introduced before 2023 has already been repealed under the country’s new tax laws and is no longer applicable.
Consequently, it described claims that new taxes are being considered for telecommunications services or petroleum products as inaccurate.
“Against this backdrop, reports claiming that new taxes are being planned for telecommunications services or petroleum products are not factual and should be disregarded”.
The statement added that the Federal Government remains committed to implementing reforms aimed at strengthening economic growth, improving revenue collection, and creating a more attractive environment for investment and employment generation.
“The emphasis remains on expanding economic activity, plugging leakages and improving efficiency rather than placing additional tax burdens on citizens.
“Any future tax measures will be announced through official channels and implemented in line with the law”, the statement added.