Business
Actionaid warns against increase in VAT, says it will slow down economy
Any increase in the percentage payable as Value Added Tax, VAT, in the country will adversely affect the Nigerian economy and slow it down, Actionaid Nigeria has warned
The group however called on the Federal Government to instead consider discontinuing the payment of petroleum subsidy, which it said many believe di not benefit Nigerians.
The group gave the warning in a statement by its Country Communication Coordinator, Niniola Ayanda, on Tuesday.
The group said: ”Rather than an increase in VAT at this time, other avenues could be explored in the short term such as the removal of petroleum subsidy, which many have argued does not benefit the Nigerian populace.
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“The plugging of fiscal leakages, a move which is currently being enforced by the present administration, can also be further strengthened.
”If VAT increase were to be implemented by the government, several measures should be taken to ensure that the objective of the increase is realised.
“An instance is the provision of the relevant technology to ensure proper monitoring, collection and elimination of leakages.
“The VAT increase could be varied relative to the kind of goods/services being purchased, since the effect on the poor would be greater than on the rich.”
Ayanda, in the statement, also commended the Independent National Electoral Commission, INEC, for its efforts in the elections, noting that the Electoral Act and other related laws needed a total review ahead the 2023 general elections.
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