VAT: Stop Misinforming Nigerians-Group Cautions PDP
The Buhari Media Organisation on Tuesday cautioned the Peoples Democratic Party against raising false alarm, especially over matters that it does not have full knowledge and understanding of.
BMO gave the advice while reacting to the PDP’s rejection of the Federal Government’s plan to increase the Value Added Tax from 5% to 7.5 %.
The group 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.
“In any case, States and Local Governments stand to benefit more from the increase in VAT; the States get 50% of the VAT collection, Local Governments get 35%, leaving the Federal Government with a paltry 15%.
“So it stands to reason that this particular increase in VAT is another bail-out mechanism designed by President Muhammadu Buhari to assuage the woes of those perennially broke tiers of government.”
The group added that 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.
The PDP had earlier in a statement urged the Federal Government to reverse its decision to increase VAT, and that such planned increase would put more pressure on families and businesses.
However, the Buhari Media Organisation 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 2.5 per cent marginal increase in VAT under the prevailing economic situation in the country.
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