Don’t attempt to increase VAT, polytechnic students Warns Tinubu
By Trek Africa Newspaper
The leadership of the National Association of Polytechnic Students (NAPS) has cautioned the Presidential Committee on Fiscal Policy and Tax Reforms against further increase of the value-added tax rate.
NAPS, in a statement issued by its Southwest PRO, Comrade Oyewumi Festus on Wednesday, 4th of September, 2024 hinted of plan by the Federal government to increase VAT to 10%, noting that the alleged move is insensitive to the hardship that is currently bedeviling the country amidst fuel price increment by the Nigerian National Petroleum Company Limited (NNPCL).
NAPS, also called on President Bola Ahmed Tinubu to immediately dissolve the committee and appoint fresh set of experts, adding that they lack ideas on the mandate given to them by the President.
The statement reads partly: “It’s in the news on the Proposed move by the Presidential Committee on Fiscal Policy and Tax Reforms to increase Vat to 10%, this move is lack of sensitivity from the hardship that is currently destroying the land and the Citizens, we are made to understand that Tax Reforms Committee was set up by the President to undertaken the improvement and Efficiency of Tax administration and to Maximize the Economic and Social benefits that can be achieved through the tax System, the key objectives of the Committee’s work include: Harmonization of multiple taxes and levies at all levels of government to a few that are broad based and easy to administer, unification of revenue collection functions into single agency per level of government as much as possible, modernisation and simplification of the tax system including the use of technology for revenue administration, leveraging on data for intelligence to curb evasion and aggressive tax avoidance, remove tax provisions which serve as impediments to business and economic growth, devise structures and
framework to institutionalise reforms for effective policy coordination and collaboration among government agencies and tiers of government
Improve efficiency of revenue collection and transparent reporting, ensure effective utilisation of tax and other revenues for social good to boost citizens’ tax morale, promote tax culture and drive voluntary compliance, transform revenue generation for sustainable development to achieve at least 18% Tax to GDP ratio within the next 3 years, that is, by 2026, instead of going in this direction to bring succor to the Citizens of the Country and bring Comfort to the People by proper Administration of Tax, the Tax Reforms has decided to be insensitive to the hardship in the Land.
“The purported increment of the VAT to 10% shouldn’t be consider for any reason.
“The NNPC has gone mad again by increasing the Fuel Price to 850 and Tax Reforms Committee is also trying to inflicting pains on Nigeria Citizens, we say no to all this Policies and Increment.“
NAPS, equally appealed to President Bola Ahmed Tinubu to address issues of NNPC and the Tax Reforms Committee without delay.
While warning against the implementation of the new VAT rate, NAPS said it will not hesitate to lockdown the whole taxation system ranging from Headquarters of Federal Inland Revenue Services, (FIRS) and other bodies.
