At 5 percent, Nigeria has one of the lowest VAT rates in Africa. However, I am not sure that the timing of this proposed increase is the best. People are struggling. For now, it would have been better to widen the tax net and target luxury goods so that the poor doesn’t suffer more. Although, I have nothing against the increase in VAT but the truth is, we can’t sustain this economy on 5 percent tax and ours is one of the lowest in the world. What I have issues with are multiple taxation on businesses which is so tough to come by and this increment does not justify the tax.
I am not in support of VAT increment because prices of foodstuffs will increase, there will be poverty, which will affect the masses more; companies would definitely increase the prices of their products and consumers, which include workers that will benefit from the so called minimum wage would have to pay more. So what is the essence of the N30,000 minimum wage? It is certain that with this new VAT, the N30,000 won’t improve the standard of living of the masses. I feel what the government need to do is to restructure the country and allow States to pay at their own pace of growth. VAT increase is not the best option for now.
The Federal Government planning to increase VAT from 5 to 7.5 percent in a country with insecurity, poor infrastructures, poor economy, and unpaid new minimum wage signed into law since January. This is not fair at all, what they are planning to do is to inflict more pains and suffering on Nigerians, especially on the masses.
I am in support of it. I know government need VAT for nation building because it is tax that the government earns as income. Without tax, no government can really stand on its legs. So long that it is being reinvested back into the areas where they are needed.
I am totally not in support of it because it is devastating to the ear and for me it looks like Nigeria is purposely inflicting pains on her citizens. Increasing VAT will make it more difficult for citizens especially business owners to be able to make as much money as they would have liked to. For the VAT increase to be implemented, a lot of infrastructures need to be put in place like electricity, roads and so on because there is hardly any business you are going to do that you don’t need electricity. We all need electricity. The Federal government should make it available, however they are going to do it. That is what the people need. We need it so badly because it is affecting our economy. When outsiders and investors from other parts of the world think of which country to go and invest in, they would stop to think about electricity, if it is an hindrance, they look for another country to invest in.
Increase in VAT would extremely affect poor people because the cost of living is currently higher than it was in the previous years. This increment will affect the prices of goods and services which would in turn affect the country’s inflation rate, interest rate hike, more unemployment and generally make people poorer. Also, this will affect consumption of things because people would buy few things to save cost and this will make businesses go down.
Increase in VAT at this time is Federal Government’s tactics of giving with left hand and taking back with the right hand. It is as simple as that. People working with the private sectors might be mostly affected. Although many Nigerians are not aware of the effects of increase in VAT on their purchasing power.
No increase has ever helped the common masses positively, it only made more money available for looting by our political class and made the politicians to steal billions when the ones before now were stealing millions. I must say this is a wrong proposal at this period. All indicators show that it will negatively affect the economy. I am definitely not in support of it.
It is really pathetic that the Nigerian government and their so called economic advisers and analysts cannot proffer solutions to the degenerating economy of the nation. Instead they want to drive more businesses to shut down and families to go hungry. Increasing VAT is not the way to go. Cutting down on the allowances and salaries of all the Legislators, Governors (security votes) by 75 percent, frivolity and unnecessary expenses amongst others should be a starting point. Creating revenue through exportation of agriculture businesses and mineral resources that the nation is blessed with apart from oil wealth; checking and stopping all leakages and demand accountability is the way forward.
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