The Federal Government of Nigeria has made a significant policy decision to exempt Value Added Tax (VAT) on diesel for a period of six months. This announcement comes in the wake of ongoing discussions with various labor unions regarding their planned industrial action.
Minister Mohammed Idris of Information and National Orientation revealed this development, emphasizing that the decision was part of the resolutions reached during a meeting with organized labor in Abuja.
Labor unions have expressed concerns about rising transportation costs and have urged the government to explore alternative energy sources. In response, the government has committed to expediting the provision of Compressed Natural Gas (CNG) buses to alleviate public transportation challenges caused by the removal of the PMS subsidy.
Additionally, the government has pledged financial support for micro and small-scale enterprises. In an effort to address the economic impact of these measures, the government has also waived VAT on diesel for the next six months.
The National Labour Congress (NLC) and Trade Union Congress (TUC) will assess these offers by the Federal Government with the intention of suspending the planned strike to allow for further consultations on the implementation of the agreed-upon resolutions.
The government has engaged in discussions with labor unions to address issues arising from the removal of the subsidy on Premium Motor Spirit (PMS). Among the key resolutions reached during the meeting are a provisional wage increment for federal government workers, provisions for CNG buses, support for small-scale enterprises, and the temporary VAT exemption on diesel.
These measures are aimed at mitigating the effects of the PMS subsidy removal and ensuring the welfare of Nigerian workers and citizens. The involvement of government officials, labor unions, and other stakeholders highlights the commitment to addressing these challenges through dialogue and collaboration
