FG’s removal of VAT on diesel for 6 months is to push down price – Minister

Minister of Information and National Orientation Alhaji Mohammed Idris Malagi has announced that the federal government waived value-added tax (VAT) on diesel for six months to reduce the cost of the commodity and support production in the industrial sector.

Malagi disclosed this in a statement after a meeting between government officials and Labour Unions over the latter’s planned industrial action that was later shelved for 30 days.

“VAT on diesel will be waived for the next 6 months,” he said, noting that it was part of the resolutions reached during the meeting with organised labour in Abuja.

While one of Labour’s demands is to cushion the rising cost of transportation via the use of alternative energy sources, the Minister said the government is “committed to fast-tracking the provision of Compressed Natural Gas (CNG) buses to ease public transportation difficulties associated with the removal of PMS subsidy”.

Apart from this, the government said it is committed to the provision of funds for micro and small-scale enterprises.

“NLC and TUC will consider the offers by the Federal Government with a view to suspending the planned strike to allow for further consultations on the implementation of the resolutions above,” the statement further added (Blueprint)