CHAIRMAN of the Federal Inland Revenue Service (FIRS), Mrs Ifueko Omogui-Okauro, on Wednesday, said the lack of a tax regime in the nation’s oil sector was making the country to lose huge revenues.

The FIRS boss, who dislosed this to the House ad hoc committee probing the subsidy regime, said the Petroleum Products Pricing Regulatory Agency (PPPRA) template had placed zero tax on petroleum products and, as such, exempted fuel importers from paying value added tax (VAT).

Non-tax regime on petroleum products, she said, was unconnected with the non-deregulation of the sector, adding that “PPPRA template in a deregulated regime will not have excluded tax on petroleum products.”

The committee, however, queried the FIRS boss over her claim and asked her for documented evidence, to which she responded that she had to look through the office files for the required information.

She noted that the Federal Government, over 10 years ago, gave an order to exempt operators in the sector from paying the VAT, in a bid not to transfer the burden to the Nigeria consumers.

According to her, “issue of tax on petroleum products is very sensitive and the Federal Government has been extremely careful about it, though tax on petroleum products supposed to be a major source of revenue, government has always been sympathetic to the masses.”

The FIRS boss, however, maintained that there were ongoing efforts by government to create a database, so that government agencies would connect to each other through e-government.

Meanwhile the panel has accused one of the oil marketers, Total Plc, of collecting N2.8 billion as over-payment on petroleum products subsidy and demanded for explanation on the development.

The Managing Director of Total, Mr Francois Bous-sagol, said “the company has never been overpaid on subsidy, if that happens, the excess will be returned to PPPRA.”

According to him, the total amount of subsidy payment collected by the company in 2010 was N11.1 billion.

In his submission, the Federal Road Safety Corps (FRSC) boss, Mr Osita Chidoka, told the committee that from the record of the commission, about 5,000 petroleum tankers plied Nigeria roads daily.

He, however, said the Federal Government ought not to have allowed the movement of petroleum products with tankers, stressing that they were the major cause of road accidents.

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