Recall that the Executive Secretary of Depots and Petroleum Marketers Association of Nigeria (DAPPMAN), Mr.Olufemi Adewole, on Monday warned that the implementation of 0.5 percent tax on a gross turnover by petroleum marketing companies as captured in the Finance Act 2020 will ruin investments.
The DAPPMAN heightened fears that by the end of this year, oil marketers may begin to fold up or will have to borrow to pay taxes.
"By the end of this year, the Finance Act 2020 mandates that petroleum marketing companies must begin to pay 0.5 percent of their gross turnover as tax. It is a challenge for us and we are already engaging the government."
Adewole said the way out of the looming crises was for the regulator which is the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), to approve a review of marketers’ margins.
He lamented that the Finance Act as presently designed has an adverse effect on the business operations of petroleum marketers.
The Executive Secretary disclosed that the margins they were getting when fuel sold at N40 per litre are the same they are still getting when it rose to N160 per litre and N200 per litre respectively.
Source - Daily Sun Newspaper.
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