Atiku, HURIWA flay Tinubu’s plan to raise VAT, warn of devastating consequences
09 September 2024 |
7:12 am
Former Vice President Atiku Abubakar has condemned President Bola Tinubu’s plan to raise the Value Added Tax (VAT) from 7.5 per cent to 10 per cent, calling it a “regressive and punitive” policy that will have devastating consequences on the Nigerian economy
Former Vice President Atiku Abubakar has condemned President Bola Tinubu’s plan to raise the Value Added Tax (VAT) from 7.5 per cent to 10 per cent, calling it a “regressive and punitive” policy that will have devastating consequences on the Nigerian economy and its people. Also, Human Rights Writers Association of Nigeria (HURIWA) condemned the plan, urging the Federal Government not to suffocate the citizens.
In a statement, yesterday, Atiku accused Tinubu and his advisers of being “profoundly insensitive” to the plight of the poor and vulnerable, who will bear the brunt of the tax increase.
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 the committee was proposing a law to the National Assembly to increase VAT from 7.5 per cent to 10 per cent.
Oyedele said, “The law we are proposing to the National Assembly has the rate of 7.5 per cent moving to 10 per cent 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 criticised the administration for indulging in extravagant spending on personal luxuries, such as the opulent renovation of villas and the acquisition of new jets and vehicles, while heaping burdens on the impoverished.
Atiku warned that the relentless rise in taxes and interest rates had been “debilitating” for businesses of all sizes, leading to job losses and intensifying the suffering of the poor.
He highlighted the struggles of the manufacturing sector, which has seen its contribution to the Gross Domestic Product (GDP) diminish by over 20 per cent since December 2023, as reported by the National Bureau of Statistics (NBS).
Further, the former VP criticised Tinubu’s recent policy allowing duty-free importation of agricultural commodities, such as wheat, maize and paddy, despite vehement opposition from farmer groups nationwide.
According to him, the policy poses a grave threat to Nigeria’s food security ambitions, as local farmers face unfair competition from low-cost producers in Asia, Europe and America, compelling them to reduce prices or entirely abandon their production efforts.
HURIWA criticised the government for imposing additional financial strain on Nigerians, stating that the policies were driving the population into deeper poverty.
The civil rights organisation further warned that the actions, influenced by the International Monetary Fund (IMF), the World Bank and individuals like Bill Gates, could ignite widespread unrest.
National Coordinator of HURIWA, Emmanuel Onwubiko, in a statement, called for immediate reversal of the VAT hike and other “suffocating” fiscal measures compounding the economic suffering of the populace.
The group warned that Nigerians might not endure further deterioration of their economic conditions, which could lead to civil disobedience.
“The VAT increment is just one in a series of damaging financial measures. Since the removal of fuel subsidy, petrol prices have surged by over 200 per cent, with a ripple effect on transportation, food and other essential commodities. The average Nigerian, especially in low-income groups, is struggling to afford necessities,” the statement reads.
The rights group further lamented the effect of inflation on the housing sector, as rising costs have forced landlords to increase rents, pushing many citizens to the edge of homelessness. Despite these severe challenges, HURIWA criticised the government’s apparent disconnect from the harsh realities faced by everyday Nigerians.
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