Alhaji Atiku Abubakar, former vice president and presidential candidate for the Peoples Democratic Party (PDP), is strongly against the federal government’s plan to raise the Value Added Tax (VAT) from 7.5% to 10%. Atiku’s criticism comes as worries about Nigerians’ rising costs of living and economic problems have grown over the past few years.
The Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC), which is led by Taiwo Oyedele, told everyone about the plan to raise the value-added tax (VAT). As part of larger steps to bring in more money for the government, the committee said it would send a bill to the National Assembly that would raise the VAT rate. But this planned rise has been met with strong opposition, with Atiku being one of the loudest critics.
Atiku spoke out against the planned increase on social media, saying that it was made at an inappropriate time given that many Nigerians are having a hard time with their finances. He said that for the past year, inflation, currency loss, and rising fuel prices have caused the cost of living to skyrocket. He said that raising VAT would only make things harder for regular people who are already having a hard time making ends meet.
The former vice president said that while the government needs to make money, taxing basic things and services is not the best way to do it. He said that this kind of action would hurt the lower and middle classes more than others, since they already have to deal with a lot of economic problems. Atiku said that the government should focus on better tax compliance, expanding the tax net, and cutting down on useless spending as long-term ways to bring in more money.
Many Nigerians who are angry about the planned VAT hike agree with Atiku’s point of view. A lot of people are complaining on social media about the rise. They are afraid that it will cause prices for everyday goods and services to go up. There are many people who say that the government should focus on policies that make people’s finances easier instead of harder.
Atiku also said in his speech that the present government has not fixed important structural problems in the Nigerian economy. He said that the main job of the government should be to boost economic growth, make jobs, and fix up infrastructure. If these basic problems are fixed, Atiku thinks the government can get more money without raising taxes by making the economy grow.
Atiku’s criticism is likely to make the government think twice about raising VAT, especially since other politicians and civil society groups are also speaking out against the plan. Before a choice is made on the VAT rate, some people have asked for a more open conversation with all stakeholders, such as businesses and labour unions.
As the discussion about the VAT rise goes on, it is clear that many people are worried about the idea. A lot of Nigerians are going to be very interested in how the government handles the growing resistance and what other ideas are put forward to solve the country’s money problems without putting more pressure on the people.