The Peoples Democratic Party and the Coalition of United Political Parties on Saturday criticised President Muhammadu Buhari for asking the governors of the 36 states to increase Value Added Tax in the next four years.
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Buhari had, while inaugurating the National Economic Council for its 2019-2023 session at the Presidential Villa in Abuja, told the governors to raise their internally generated revenue and VAT in the next four years.
He told the governors to increase the taxes in such a manner that there would be no disruptions to business operations.
But the National Publicity Secretary of the PDP, Mr Kola Ologbondiyan, in an interview with our correspondent in Abuja, said VAT increment would further impoverish the already traumatised Nigerians.
He urged Buhari to rather explore more revenue generation platforms by harnessing the abundant natural resources and investment opportunities in the country than inflicting more taxes on Nigerians.
According to him, PDP will never support VAT increment.
Ologbondiyan said, “How can we support VAT increment? It will further traumatise the people. We cannot support it. There are several opportunities for government to get money and deliver dividends of democracy to the people that have not been explored in this country.
“What is the government doing about opening more frontiers for investments in our nation? It is not just going after the people and increasing taxation at the slightest opportunity. That is not governance. PDP can never support increase in VAT.”
The CUPP spokesman, Mr Imo Ugochinyere, said it would be insensitive to increase VAT.
He accused Buhari of not managing national resources at his disposal very well, adding that Buhari should close up all avenues for revenue leakages.
According to him, VAT increase will collapse many businesses and worsen unemployment in the country.
Ugochinyere said, “This matter came up during the election and we said clearly that the timing was wrong. It is the height of insensitivity. The little resources that have been available, the President has not shown judicious use of them. He has not taken control of the government. There has been a lot of waste. He still has about N2bn or N3bn for feeding in Aso Rock.
“They should close all the loopholes that have been taking our money. He can save a lot. The economy is not stable for you to start taxing people the more. By doing that, more businesses will close and unemployment will increase.
“This is not the right time to increase VAT. They should first of all stabilise the economy and secure the country.”
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