- The presidency has expressed the federal government's firm position to go ahead with the plan to increase the Value Added Tax (VAT)...
- The presidency has expressed the federal government's firm position to go ahead with the plan to increase the Value Added Tax (VAT) from 5 percent to 7.5 percent - The Buhari Media Organisation (BMO) made this known in its reply to the Peoples Democratic Party (PDP)'s stance on the issue - BMO told the PDP to take for granted the federal government's proposal which it described as patriotic.
The Buhari Media Organisation (BMO) has urged the Peoples Democratic Party (PDP) not to undermine the federal government’s plan to increase the Value Added Tax (VAT) from 5 percent to 7.5 percent. BMO in a statement signed by its chairman Niyi Akinsiju, in Abuja on Tuesday, September 17, described the plan as patriotic and genuine geared towards raising the needed resources to address some of the major infrastructural needs of the country, The News Agency of Nigeria (NAN) reports.
BMO urged the party not to undermine a patriotic and genuine effort of President Muhammadu Buhari’s administration to raise the needed resources to address some of the major infrastructural needs of Nigerians.
“PDP should genuinely express concern that Nigerians could not bear the burden of the 2.2 per cent marginal increase in VAT under the prevailing economic situation in the country. “The party should have first demonstrated its patriotism and genuine concern for Nigerians by directing its governors, who were part and parcel of the decision to effect increase in the country’s tax regime, to reject the idea rather than calling on the federal government to reverse its decision on the new policy.
“In any case, states and local governments stand to benefit more from the increase in VAT; the states get 50 per cent of the VAT collection, local governments get 35 per cent , leaving the federal government with a paltry 15 per cent,” it said. According to the organisation, this particular increase in VAT is another bail-out mechanism designed by Buhari to assuage the woes of those perennially broke tiers of government.
BMO also said: “Even with the new marginal increase, Nigeria has one of the lowest VAT rates in the world, and considering the huge infrastructural deficit the country is facing today, the current government has to think outside the box.
“And look for how best to raise resources to meet some of the major needs of its people and also ensure that the impact does not put much burden on the citizenry. And this is what the government is trying to do with this marginal increase in VAT.” Earlier, Legit.ng reported that the Federal Executive Council (FEC) had approved the increase in Value Added Tax (VAT) rate to 7.2% from its previous 5%.
The minister of finance, budget and national planning, Zainab Ahmed, made this known to journalist at the state house after the FEC meeting on Wednesday, September 11.
Source:Legit.ng
