By Munachimso Obienyi
The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN), has warned that the implementation of 0.5 per cent tax on gross turnover by petroleum marketing companies as captured in the Finance Act 2020 will ruin investments.
This was even as DAPPMAN raised fears that by the end of this year; oil marketers may begin to fold up or will have to borrow to pay taxes. Executive Secretary of DAPPMAN, Mr. Olufemi Adewole, handed down the warning at the Platforms Africa Continental Forum held in Lagos yesterday, with the theme ‘’Legislative and Business Survival in Africa: A Review of Nigeria’s 9th Parliament and Agenda for the 10th Assembly. ‘‘By the end of this year, the Finance Act 2020, mandates that petroleum marketing companies must begin to pay 0.5 per cent of their gross turnover as tax.
It is actually a challenge for us and we are already engaging 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’ margin.
