Former Vice President and presidential candidate of the Peoples Democratic Party (PDP), Alhaji Atiku Abubakar has criticised the federal government over a planned increase in Value Added Tax (VAT), from 7.5% to 10% despite the hardship Nigerians have been experiencing in the last one year.
Atiku’s condemnation came after the Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC) chaired by Taiwo Oyedele, last week announced plans to propose a law to the National Assembly that would increase the Value Added Tax (VAT) rate from the current 7.5 per cent to 10 per cent.
Speaking on a television programme, Oyedele had revealed that his committee was also working on consolidating the multiple taxes in Nigeria to streamline the tax system and ultimately reduce the tax burden on citizens and businesses.
“The law we are proposing to the National Assembly includes an increase in the VAT rate from 7.5 percent to 10 percent, starting from 2025. However, we are uncertain about how quickly the law will be passed. The proposal also outlines subsequent increases and the specific years they will take effect,” he said.
But while reacting to the proposal, Atiku, in a statement posted on X on Sunday, said the move has further unveiled a new era of regressive and punitive policies on Nigerians with its impact destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.
“The increase in VAT is set to become the blazing inferno that will consume the very essence of our people,” Atiku wrote.
“President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5% to 10%, even as the NNPCL has announced a soaring PMS price increase at the pump. This move unveils 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.
READ ALSO:Oando threatens legal action against Atiku, others over comments on NAOC transaction
“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses!
“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.
“One need not 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 onerous, debilitating businesses of all sizes and leading to job losses while intensifying the suffering of the poor.
“The manufacturing sector, in particular, has endured relentless strife since Tinubu’s ascendancy, with its contribution to the GDP diminishing by over 20% since December 2023, as reported by the NBS.
“In early August, Tinubu turned his attention to agriculture. As is customary with this administration, a new policy was clandestinely formulated and announced, permitting duty-free importation of agricultural commodities such as wheat, maize, and paddy, despite vehement opposition from farmer groups nationwide.
“This policy poses a grave threat to Nigeria’s food security ambitions, as local farmers, facing unfair competition from low-cost producers in Asia, Europe, and America, are compelled to reduce or entirely 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.
“President Tinubu and his advisers would be wise to redirect their efforts towards crafting sustainable solutions to the systemic shocks afflicting the economy rather than compounding the crisis with measures destined to ignite further turmoil.”
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.