The federal government has been urged to reduce tax on renewable energy products in the country.
The Executive Director Environmental rights Action Godwin Uyi Ojo who made this known while addressing journalists in Abuja said tax burdens impose obstacles to the promotion of renewable energy.
“Although the tax regimes may help African governments to rake in some revenue from import tariffs, it is clear that it is also contributing to the slow pace of renewable energy development and access for all. Import tariffs increase tax burden in ways that lead to high transaction costs that are often passed on to consumers seeking renewable energy transition,” he said.
He said the diverse sources of tax was worrisome with 5 per cent stamp duty, 5 per cent on solar panel, 25 per cent on batteries and inverters and other sundry taxes which raises the tax burden to about 30 per cent on products.
He said there were several opportunities linked to reduced taxes burdens which included a strong commitment to energy transition from fossil fuels to renewable energy sources in line with the Paris Agreement of 2015.
Culled from Daily Trust
Click here to read more
