 |
Atiku Opposes VAT Increase, Cautions Tinubu |
Former Vice-President Atiku Abubakar has criticized the Federal Government's plan to raise the VAT, warning that it could become a "blazing inferno that will consume the very essence of our people."
In an interview on Channels TV’s Politics Today, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, revealed that the committee is proposing a law to the National Assembly to increase the value-added tax from the current 7.5% to 10%.
He stated, “We have significant issues with our tax revenue. We have general revenue issues, both tax and non-tax. The entire fiscal system is in a state of crisis.
“When my committee was established, we had three broad mandates. The first was to examine governance: our national finances, borrowing, and coordination within the federal government and across sub-national entities.
“The second was revenue transformation. The country’s revenue profile is abysmally low. Even if we dedicated all our revenue to fixing roads, it would be insufficient. The third mandate concerns government assets.
“The law we are proposing to the National Assembly aims to increase the VAT rate from 7.5% to 10% starting in 2025. We are unsure how soon the law will be passed. Subsequent increases are also indicated based on the year they will take effect.”
In a statement on Sunday morning, Atiku responded, saying that the move, coming on the heels of the increase in the Pump Price of Premium Motor Spirit (PMS) by the Nigerian National Petroleum Corporation Limited (NNPCL), is “destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.”
The Peoples Democratic Party (PDP) Presidential Candidate in the last election, who noted that one does not need to be an economist to understand the “implications of President Tinubu’s ill-conceived policies for Nigeria’s future,” added that the President should focus on creating sustainable solutions to the systemic shocks affecting the economy rather than compounding the crisis with measures that will ignite further turmoil.
He said, “The increase in VAT is set to become the blazing inferno that will consume the very essence of our people… Tinubu’s actions reflect a profound insensitivity to the plight of the less fortunate as he indulges in the opulent renovation of villas and the acquisition of new jets and vehicles for himself and his family.
“President Bola Tinubu, along with his advisers, has decided to raise the VAT rate from 7.5% to 10%, even as the NNPCL has announced a significant increase in PMS prices at the pump.
“This move introduces a new era of regressive and punitive policies, and its impact is destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.
“President Tinubu and his team seem to be resorting to their familiar tactic: imposing burdens on the impoverished while ignoring their own extravagant excesses!
“One does not need to be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future. The relentless rise in taxes and interest rates has proven excessively burdensome, debilitating businesses of all sizes and leading to job losses while intensifying the suffering of the poor.
“The manufacturing sector, in particular, has faced relentless challenges since Tinubu’s rise to power, with its contribution to the GDP diminishing by over 20% since December 2023, according to the NBS.
“In early August, Tinubu turned his attention to agriculture. As is customary with this administration, a new policy was quietly formulated and announced, allowing duty-free importation of agricultural commodities such as wheat, maize, and paddy, despite strong opposition from farmer groups nationwide.
“This policy poses a serious threat to Nigeria’s food security ambitions, as local farmers, facing unfair competition from low-cost producers in Asia, Europe, and America, are forced to reduce or abandon their production efforts. It jeopardizes job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development.”
