Tax reform bills could stifle oil, gas sector – PENGASSAN
2 years ago 2 min read
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The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, has raised the alarm that the proposed tax reform bills could stifle exploratory activities in the oil and gas sector.
The association warned that the Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA) would be negatively impacted if the bills sail through.
Recall that there has been growing apprehension over the proposed tax reform bills currently before the National Assembly. While the North and some members of the Nigerian Governors Forum has strongly opposed to the bills, the presidency insists that the bills must pass through legislative processes for implementation because of their inherent benefits.
The oil workers equally want the Federal Government to expand the scope of tax relief exemptions, especially for workers in the oil and gas sector.
While the bills have gone through several debates in the National Assembly, PENGASSAN has cautioned the legislature against hurriedly passing the tax bills without recourse to proper public hearing or effecting amendments where necessary.
President of PENGASSAN, Festus Osifo spoke on the issue while addressing members of the National Executive Council (NEC) on Tuesday in Abuja.
He said, “The Association notes the ongoing tax reforms and wish to demand that the tax relief exemptions that is given to those earning minimum wage and business should be expanded to accommodate more people and companies in that category.
“Clarity must be provided regarding revenue collection processes from oil and gas companies as some provisions in the bill have the likelihood of negatively impacting our members in some of our major branches like Nigeria Upstream Regulatory Commission (NUPRC) and the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA).
“We shall be participating actively in the public hearing where our position will be well articulated.
“We hereby call on the National Assembly to conduct a proper public hearing session where different views will be collated to amend the provisions in the bill and not just to tick the box.”
