NLPGA Rejects PPPRA’s N2.5bn ‘Administration Tax’ On LPG

The Nigeria Liquefied Petroleum Gas Association (NLPGA), has rejected moves by the Petroleum Product Pricing Regulatory Agency (PPPRA), to impose N2.5 billion Administrative Levy or ‘Administration Tax’ on LPG.

In a message obtained by Economic Confidential, Executive Secretary, NLPGA, Mr Olakunle Oyebanjo, stated: “Earlier this year, following a 10-year battle by NLPGA, the Federal Inland Revenue Service (FIRS), finally conceded to removing Value Added Tax (VAT), from domestic LPG (Cooking gas).

“The VAT burden at the time was worth N1 billion annually and was removed in an effort to support the Federal Government’s stated objective to deepen the adoption of gas as a clean fuel for cooking in Nigeria.

“LPG has over the last 10 years been a fully deregulated petroleum product and as such, the PPPRA, being a price regulatory agency, has no business whatsoever with LPG.

“Yet, before the industry could celebrate, and despite a grand announcement by the Minister of State for Petroleum Resources, Chief Timipre Sylva, identifying 2020 as the “Year of Gas,” the PPPRA silently imposed a N2.5 billion ‘tax’ on housewives and poor low income earners through the imposition of an ‘Administration Tax’.

Continuing, Olakunle, said: “What does PPPRA need N2.5 billion for? If they need money to operate, why did they not get it from the government? Why are housewives, the poor and rural consumers the best source of income for PPPRA?

“Why is PPPRA blockading terminals from loading out gas? How well did the PPPRA administer subsidies on kerosene under its previous guise of regulation?”

Referring to its members, he added: “Say no to PPPRA extortion! Say no to unfair taxes on the poor! Say no to re-regulation of LPG through the backdoor.”