Rights group urges caution over VAT increase

Environmental Rights Action and Friends of the Earth Nigeria (ERA/FoEN) has enjoined concerned authorities to exercise restraint over the implementation of the proposed hike in Value added Tax (VAT).

It Executive Director, Dr. Godwin Uyi Ojo, who made the appeal at a workshop on tax regimes for solar off-grid electricity in Africa which held yesterday in Abuja, argued that the increase from five to 7.5 per cent of the commodity tax would worsen the plight of Nigerians.

He warned that the execution of the policy would take away access to renewable energy from underprivileged citizens who would be forced to spend their meager earnings daily on fossil energy.