‘VAT, Fuel Price Hikes Will Worsen Cost-Of-Living Crisis’, Atiku Warns
The federal government’s intentions to increase value-added tax have been denounced by Atiku Abubakar, the former vice president.
The measure, according to Atiku’s Sunday message via his X Twitter, will exacerbate the cost-of-living crisis in the country.
He said the plan was like a “blazing inferno” that will destroy our people from the inside out.
According to him, “President Bola Tinubu, along with his entourage of advisors, has resolved to increase the VAT rate from 7.5% to 10%,” which is happening at the same time as the NNPCL has announced a steep increase in the price of PMS at the pump.
The domestic cost of living crisis and Nigeria’s already weak economic growth will be worsened by this action, which heralds a new age of regressive and punishing policies.
It seems like President Tinubu and his entourage are back to their old tricks: making the poor pay for their own lavish lifestyles while they ignore the plight of the poor.
As he lavishly renovates houses and buys new aircraft and cars for his family, Tinubu demonstrates a deep callousness towards the suffering of the less fortunate.
Even someone without a background in economics can see the dark cloud that President Tinubu’s misguided policies have cast over Nigeria’s future.
Businesses large and small have been crippled by the relentless increase in taxes and lending rates, which has resulted in job losses and has made the misery of the poor even worse.
The NBS reports that “the manufacturing sector, in particular, has endured relentless strife since Tinubu’s ascendancy, with its contribution to the GDP diminishing by over 20% since December 2023.”
“Tinubu shifted his focus to farming in early August. A new policy was quietly revealed, as is typical for this administration, allowing the duty-free import of agricultural goods including wheat, maize, and paddy, despite strong objections from farmer groups across the country.
Local farmers in Nigeria are forced to cut back or stop producing all together due to this policy, which puts Nigeria’s food security goals at serious risk because of the unfair competition from low-cost producers in the US, Europe, and Asia.
It casts doubt on Nigeria’s sustainability and development, endangering job creation, income generation, and the sector’s long-term prosperity.
It would be prudent for President Tinubu and his advisors to stop making things worse and start finding long-term answers to the economic systemic shocks that are causing so much trouble.
The fuel, or Premium Motor Spirit, price hike by the Nigerian National Petroleum Corporation Limited is the catalyst for Atiku’s tantrum.