Increasing VAT to 10% will be ill-timed – Atiku

The implementation of proposed VAT increase from current 7.5% to 10%, is a blazing inferno that will consume the very essence of Nigerians, Atiku Abubakar, former Nigeria’s vice president and Peoples Democratic Party (PDP), presidential candidate in the 2023 election, warned on Sunday.

Atiku Abubakar gave the warning on Sunday, while revealing that “President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5% to 10%”.

According to the former vice president, this policy coming on the heels of the recent increase in prices of petrol by the Nigeria National Petroleum Company (NNPC) Limited, is set to create more hardships for Nigerians.

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“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,” Abubakar said.

“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses.”

He described the actions as reflecting “a profound insensitivity to the plight of the less fortunate as he indulges in the opulent renovation of villas and the acquisition of new jets and vehicles for himself and his family”.

“One need not be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future,” he said.

“The relentless rise in taxes and interest rates has proven excessively onerous, debilitating businesses of all sizes and leading to job losses while intensifying the suffering of the poor.

“The manufacturing sector, in particular, has endured relentless strife since Tinubu’s ascendancy, with its contribution to the GDP diminishing by over 20% since December 2023, as reported by the NBS.”

He recalled how in August, President Tinubu opened Nigeria’s doors to food importation, a policy, he said will hurt local economy by stifling growth and jobs creation.

“As is customary with this administration, a new policy was clandestinely formulated and announced, permitting duty-free importation of agricultural commodities such as wheat, maize, and paddy, despite vehement opposition from farmer groups nationwide,” he said .

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“This policy poses a grave threat to Nigeria’s food security ambitions, as local farmers, facing unfair competition from low-cost producers in Asia, Europe, and America, are compelled to reduce or entirely abandon their production efforts.

“It jeopardises job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development.”

He called on the President and his advisers to redirect their efforts into crafting sustainable solutions to the systematic shocks afflicting the economy

“It would be wise to redirect their efforts towards crafting sustainable solutions to the systemic shocks afflicting the economy rather than compounding the crisis with measures destined to ignite further turmoil,” he said.