By Aduragbemi Omiyale
President Bola Tinubu has been advised to put the proposed increase in value-added tax (VAT) on hold until the country’s economy gets back on its feet.
This suggestion was given by the Conference of Nigeria Political Parties (CNPP), which argued that raising the consumption tax could deepen the woes of the citizens.
The National Assembly is considering hiking VAT from 7.5 per cent to 10 per cent next year, 12.5 per cent in 2016 and 15 per cent in 2030.
The federal government, which has experienced a shortfall in earnings, has continued to explore ways to generate more funds.
This has led to the removal of petrol subsidies, which the CNPP said has made the cost of living very high in the country.
The group appealed to Mr Tinubu to reverse the rise in petrol prices as well as the price of cooking gas in Nigeria.
“As an oil-producing country, Nigeria has historically relied on petroleum products and cooking gas as essential sources of energy for both domestic and industrial purposes.
“However, the recent price hikes have created an unsustainable financial burden on citizens, particularly low-income households,” the association said in a statement signed by its Deputy National Publicity Secretary, Mr James Ezema.
CNPP demanded the federal government to “take immediate steps to reverse the pump price hike and stabilize petrol and cooking gas prices through targeted interventions.”
“This includes temporary price relief measures, tax reductions, or subsidies on LPG for low-income households,” it added.
It emphasised that the rise in prices of goods and services has “exacerbated the financial burden on ordinary Nigerians, with petrol and cooking gas prices skyrocketing in recent months. This has increased inflation, pushing many families into deeper financial hardships and threatening economic stability and job security in the country.”
The body lamented that, “Small and medium-sized enterprises (SMEs) are struggling to manage their operational costs due to increased fuel prices, threatening economic stability and job security,” noting that “the federal government must prioritize the welfare and well-being of Nigerians and take concrete steps to alleviate the suffering and hunger among the masses in the country.”
The group charged the government to go after “looters and government officials in the previous administration of President Muhammadu Buhari and recover trillions of naira stolen from the nation’s treasury under several guises.”