Atiku slams Nigerian government’s plan to raise VAT to 10%

Former Vice President and presidential candidate of the Peoples Democratic Party (PDP), Alhaji Atiku Abubakar has criticized the federal government over the planned increase in Value Added Tax (VAT), from 7.5% to 10% despite the hardships Nigerians have endured in the past one year.

Atiku’s criticism comes after the Presidential Fiscal Policy and Tax Reform Committee (PFPTRC) chaired by Taiwo Oyedele, last week announced plans to propose a bill to the National Assembly that would increase the Value Added Tax (VAT) rate from the current 7.5 percent to 10 percent.

Speaking on a television programme, Oyedele revealed that his committee was also working on merging various taxes in Nigeria to streamline the tax system and ultimately reduce the tax burden on citizens and businesses.

“The legislation we have proposed to the House of Representatives includes an increase in the VAT rate from 7.5 percent to 10 percent, starting in 2025. However, we are not sure how soon the legislation will be passed. The proposal also outlines subsequent increases and the specific years in which they will apply,” he said.

However, 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 against Nigerians, the impact of which is destined to deepen the cost of living crisis in the country and worsen Nigeria’s already fragile economic growth.

“An increase in VAT will be a flame that burns away the essence of our people,” wrote Atiku.

“President Bola Tinubu, together with his group of advisors, has decided to increase the VAT rate from 7.5% to 10%, even as the NNPCL has announced a skyrocketing increase in the price of PMS at petrol pumps. This move heralds a new era of regressive and punitive policies, and its impact is destined to deepen the domestic cost of living crisis and worsen Nigeria’s already fragile economic growth.

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“President Tinubu and his entourage appear to be using their usual tactics: piling the burden on the poor while ignoring the luxuries they indulge in!

“Tinubu’s actions reflect a profound insensitivity to the plight of the less fortunate as he indulges in renovating luxury villas and purchasing new jets and vehicles for himself and his family.

“It doesn’t take an economist to understand the implications of President Tinubu’s ill-advised policies for Nigeria’s future. The continued increase in taxes and interest rates has proven to be onerous, undermining businesses of all sizes and causing job losses while exacerbating the plight of the poor.

“The manufacturing sector, in particular, has been in relentless struggle since Tinubu’s accession, with its contribution to GDP shrinking by more than 20% since December 2023, as reported by the NBS.

“In early August, Tinubu turned his attention to agriculture. As usual in this administration, a new policy was formulated and announced in secret, allowing duty-free imports of agricultural commodities such as wheat, maize and rice, despite strong opposition from farming groups across the country.

“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 the Americas, are forced to scale back or cease production altogether. This policy jeopardizes job creation, wealth creation and the long-term prosperity of the sector, casting a shadow over Nigeria’s sustainability and development.

“President Tinubu and his advisers would be wise to redirect their efforts to creating sustainable solutions to the systemic shocks hitting the economy, rather than exacerbating the crisis with actions that will only fuel further chaos.”

Atiku’s post slams Nigerian government’s plan to increase VAT to 10% first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.