Proposed VAT Increase: Ali Ndume Vows To Resist Any Attempt To Hike Taxes

By Kolawole Ojebisi 

The lawmaker Representing Borno South in the Senate, Ali Ndume, has vowed to resist any attempt by the Federal Government to undertake what it called punishing the poor with more taxes.

Ndume noted that with the current economic challenges in the country an increase in tax in any form would amount to a “burden”, particularly to the common man

The legislator said this in reaction to reports that the National Assembly is considering a bill proposing an increase in value added tax (VAT) from 7.5 percent to 10 percent by 2025.

According to this reports, the legislature also intends to increase VAT to 12.5 percent by 2026 through 2029.

But appearing on Prime Time, an Arise Television programme, Ndume said he would resist any attempt to “punish the poor with more taxes.”

He advised the federal government to go after rich individuals and corporations, adding that millions of Nigerians are barely surviving and cannot afford to be taxed more than they already are.

“We are almost losing the middle class in Nigeria. It is either you have it or you do not have it. Those that are in the middle are being squeezed out,” he said.

“If Nigerians can pay for those taxes, it is okay. But in the current situation, increasing taxes is not an alternative at all. I will not support any increase in taxes.

“Let us get things right first. Let people start living and not surviving. Let people have extra income.

“The north has more poverty, so if you want to increase taxes again, let’s be considerate. Tax those people who can afford it. Those who can afford the taxes in Nigeria are not even paying for them.

“I’m going to start campaigning against the increase in tax for now because it doesn’t only affect the northerners, it affects the average Nigeria. I’m not saying people should not pay tax but don’t tax people that are barely surviving.

“Let the tax authority concentrate on those that are supposed to pay tax.” he added.

Nigeria has been grappling with its worst economic crisis in decades since President Bola Tinubu unveiled a series of reforms in 2023.

Ndume’s reaction came hours after governors from the North under the auspices of Northern Governors’ Forum kicked against the proposed VAT increase .

The governors on Tuesday stated without equivocation that they are against the proposed VAT increase adding that the rejection is an attack on the Tinubu administration but it behoved them to shield their people from burdensome taxation.