Atiku-Abubakar-Lambasts-President Bola-Tinubu-for-increasing-Value-Added-Tax-(VAT)-rate-amid-rising-hunger,-cost-of-living
Wisdom Tide
09/09/2024
Atiku said that President Tinubu and his entourage seem to be resorting to heaping burdens upon the impoverished Nigerians while steadfastly ignoring their extravagant excesses.
Atiku, a former presidential candidate of the Peoples Democratic Party (PDP), in a post on X on Sunday, said the VAT increment is set to become the blazing inferno that will consume the essence of Nigerians.
According to him, the move by Tinubu’s government unveils a new era of regressive and punitive policies, adding that its impact is destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.
The Chairman of Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, while speaking during an interview on Channels TV’s Politics Today, had said that the committee was proposing a law to the National Assembly to increase VAT from the current 7.5% to 10%.
Oyedele said, “The law we are proposing to the National Assembly has the rate of 7.5% moving to 10% from 2025. We don’t know how soon they will be able to pass the law. Then subsequent increases are also indicated in terms of the year they will kick in.”
But Atiku said that President Tinubu and his entourage seem to be resorting to heaping burdens upon the impoverished Nigerians while steadfastly ignoring their extravagant excesses.
He said, “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.
“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.”
“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.”
According to Atiku, “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,” he added
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