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Senate proposes N5 tax per litre of fuel

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Saraki outlines Senate plans for the next 22 months

A bill, currently before the Senate, has recommended a levy of N5 chargeable per litre on any volume of petrol and diesel products imported into Nigeria and on non locally refined petroleum products.

The interpretation of the proposed charge is that, end users (motorists) will pay N5 tax on every litre of fuel bought at any fuel station.

The bill was listed on the Order Paper on Thursday, but was stepped down at the last minute. The bill is titled National Road Fund and was to be presented by the Senate committee chairman on Works, Senator Kabiru Gaya from Kano State.

In the bill, the Senate is also proposing that toll fees not exceeding 10 per cent of any revenue paid as user charge per vehicle on any federal road designated as a toll road. The payment is not applicable to roads under the Public Private Partnership arrangement.

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The Red Chamber, as part of its recommendations, is proposing that there should be an “inter-state mass transit user charge of 0.5 per cent deductible from fares paid by passengers to commercial mass transit operators on inter-state roads.

“There shall be a road fund charge of 0.5 per cent on the assessed value of any vehicle imported at any time into Nigeria. There shall be lease, license or other fees which shall be 10 per cent of the revenue accruing from lease or license or other fees pertaining to non-vehicular road usage along any federal road and collected by the Federal Roads Agency.”

The report of the committee, a copy of which was obtained by Ripples Nigeria, was signed by fifteen senators. They are Senators Gaya (chairman), Clifford Ordia (vice chairman), Mao Ohuabunwa (member), Bukar Abba Ibrahim (member), Biodun Olujimi (member) and Ben Bruce (member).

Others are Senators Gilbert Nnaji (member), Abubakar Kyari (member) Ibrahim Danbaba (member), Mustapha Bukar (member), Ahmed Ogembe (member), Sani Mustapha and Buruji Kashamu (member).

Meanwhile, the Senate has suspended the consideration of a report of its committee on Works on a bill tagged National Roads Authority.

The Senate suspended the consideration of the report, over the inability of lawmakers to reconcile their differences on certain grey areas.

Following the suspension, the Senate has mandated the committee to do a more thorough job, by accommodating all the divergent views expressed by lawmakers.

 

 

 

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0 Comments

  1. Anita Kingsley

    June 1, 2017 at 6:42 pm

    The senate should not start nonsense that will cause another protest in Nigeria, N5 tax on every liter of petroleum is way too much!

    • Animashaun Ayodeji

      June 1, 2017 at 7:33 pm

      I’m sure part of the money is going to the pockets of our lawmakers who don’t know more than money!

  2. Abeni Adebisi

    June 1, 2017 at 8:25 pm

    What will the tax collected be used for? They need to give better clarification on why the tax is being introduced.

  3. JOHNSON PETER

    June 2, 2017 at 6:08 am

    Senate proposes but Nigerians will dispose, this is the time we shall let them know that we were the ones who elected them to represent us and not their will.

    • seyi jelili

      June 2, 2017 at 6:19 am

      That’s just a cheap talk, there is nothing we can do about the tax if they insist, highest we protest and all ends there

  4. yanju omotodun

    June 2, 2017 at 6:37 am

    I will lead this protest this time around and it will brutal on the senators because I will ensure the initiator gets the beating of his life, let them just try something stupid

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