By Abiola Olawale
Former Vice President Atiku Abubakar has strongly criticised the Federal Government for reportedly proposing an increment of the Value Added Tax (VAT) rate from 7.5% to 10%.
Atiku, the 2023 presidential candidate of the Peoples Democratic Party (PDP), raised an alarm that the proposed increment in VAT rate is capable of exacerbating Nigeria’s already dire economic situation.
According to him, the proposed tax hike and other policies being implemented by the administration of President Bola Ahmed Tinubu are hurting several Nigerians and affecting business owners.
Atiku who took to his official X (formerly Twitter) account on Sunday, expressed his disappointment at the administration of Tinubu.
He described the potential VAT increase as a “blazing inferno” that could further destabilize Nigeria’s fragile economy.
He said: “The increase in VAT is set to become the blazing inferno that will consume the very essence of our people.
“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.’
He also maintained that the VAT increase would impose further hardship on Nigerians, particularly the most vulnerable, at a time when inflation and unemployment rates are skyrocketing, while also accusing the current Tinubu-led administration of being “profoundly insensitive” to the plight of ordinary Nigerians by indulging in unnecessary luxury spending.
This is coming after the Federal Government launched a tax reform initiative following the establishment of a tax and fiscal policy committee by Tinubu in August 2023.
The committee was headed by renowned tax expert, Taiwo Oyedele.
It was tasked with creating a new tax framework to drive economic growth and development across the country.
As part of its mandate, the committee has proposed various reforms, including an increase in Value Added Tax (VAT) and the introduction of tax exemptions for low-income earners, among other measures.
