Members of the ActionAid group in Nigeria have warned the Federal Government to desist from raising VAT, (Value Added Tax) in the country, stating that such policies would further slow down the economy.
Instead, they urged that the payment of subsidy on petroleum should be halted.
The warning was contained in a statement released by the group’s communication coordinator, Niniola Ayanda.
It reads, “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.
“The plugging of fiscal leakages, a move which is currently being enforced by the present administration, can also be further strengthened. Court grants PDM, PDP access to inspect election materials in Nasarawa.
“If the VAT increase were to be implemented by the government, several measures should be taken to ensure that the objective of the increase is realized.
“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.”
The group further acknowledged the efforts of INEC officers during the last elections.
However, it urged that every rule of law surrounding electoral processes in Nigeria should be reviewed and amended appropriately before the 2023 elections.
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