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PDP Raising False Alarm Over New VAT Regime, BMO Tells Nigerians

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The Buhari Media Organisation has accused the Peoples Democratic Party of raising false alarm, especially over matters that it does not have full understanding of.

The Organization stated this on Tuesday while reacting to the PDP’s rejection of the Federal Government’s plan to increase the Value Added Tax from five per cent to 7.5 per cent.

 

It urged the PDP 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.

 

The PDP had earlier called on the Federal Government to reverse its decision to increase VAT, and that such planned increase would put more pressure on families and businesses.

 

But the BMO in a statement signed by its Chairman, Niyi Akinsiju, and Secretary Cassidy Madueke, said the PDP was not genuinely worried 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.

 

“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.

 

“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.”

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