FG suspends VAT on diesel to avert workers strike

FG suspends VAT on diesel to avert workers strike

The Federal Government has suspended the value-added tax (VAT) on diesel for the next six months.

This was part of the decisions taken with leaders of the organised labour at a meeting on Sunday.

The move is meant to avert a nationwide workers’ strike over the impact of the removal of the petrol subsidy.

The labour unions involved in the four-hour meeting held at the State House Abuja on Sunday are the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).

President Bola Tinubu’s Chief of Staff Femi Gbajabiamila said the government team and the labour leaders had agreed on the matter.

This was confirmed in statement by the Minister of Information and National 0rientation, Mohammed Idris.

It also said the FG was “committed to fast-tracking the provision of compressed natural Gas (CNG) buses to ease public transportation difficulties associated with the removal of PMS subsidy”.

Gbajabiamila said the government would see to the provision of funds for micro and small-scale enterprises, adding that the value-added tax (VAT) on diesel will be waived for the next six months.

“The Federal Government will commence payment of N75,000 to 15 million households at N25,000 per month, for a three-month period from October-December 2023,” the statement reads.

“A sub-committee is to be constituted to work out the details of implementation of all items for consideration regarding government interventions to cushion the effect of fuel subsidy removal.

“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.”

Labour leader speaks

Speaking to journalists, after the parley, President of the NLC, Joe Ajaero, said the labour groups would take all the promises by the government to its organs for consideration.