Edun: 5% Tax On Petroleum Products Won’t Be Implemented Till 2026

Following the backlash and criticisms trailing the proposed 5 per cent tax on petroleum products, the Federal Government has said implementation of the new surcharge would not take effect until 2026..  .Read ..Full.. Article.. .

Besides condemnations from several quarters, given the already high cost of living and hardship in the country, the Trade Union Congress of Nigeria (TUC) had on Monday issued a 14-day ultimatum to the federal government to rescind its decision or risk a total shutdown of the economy.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who briefed newsmen on Tuesday in Abuja, explained that even though the Tax Act would become operational on 1st January 2026, implementation of the 5 per cent surcharge may still be delayed after that date.

Edun noted that the surcharge, which targets petrol, diesel, and other fossil fuels, required a formal government proclamation and an official order signed by the finance minister to be published in the National Gazette before its implementation.

He said: “The tax reform bills and the Tax Act will not become operational until January 1, 2026, and the 5% fuel surcharge, which is mentioned therein, will not automatically come into effect.

“There’s even a process before any such charge can come into effect. It requires a commencement order from the Honourable Minister of Finance, and this, indeed, must be published in a gazette. So it’s not automatic that we wake up on January 1 and there’s a new tax and it’s going to be levied.

“No, there’s a whole formal process involved, and as of today, no order has been issued, none is being prepared, and there is no plan, no immediate plan to implement any surcharge. Let’s look at the transition from the legal framework, and..  Read . .More —