Ndume opposes proposed VAT increase, cautions against burdening poor

Ali Ndume, the senator representing Borno South, has voiced strong opposition to the federal government’s plans to increase the Value Added Tax (VAT) from 7.5 percent to 10 percent by 2025, with a potential rise to 12.5 percent by 2026 and beyond.

During a recent appearance on the Prime Time program on Arise Television, Ndume emphasized that the government should refrain from imposing additional tax burdens on the already struggling poor and middle-class citizens of Nigeria.

The proposed VAT hike comes at a time when millions of Nigerians are grappling with severe economic challenges, leading Ndume to argue that it is inappropriate to penalize those who are barely making ends meet.

He stressed the need for the government to focus on wealthier individuals and corporations, who can more afford to contribute to tax revenues, rather than targeting vulnerable populations.

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“We are almost losing the middle class in Nigeria,” Ndume lamented. “It is either you have it or you do not have it. Those in the middle are being squeezed out.” He further stated, “If Nigerians can pay for those taxes, it is okay. But in the current situation, increasing taxes is not an alternative at all. I will not support any increase in taxes.”

Ndume urged the government to prioritize addressing the economic struggles of its citizens before considering tax hikes. “Let us get things right first. Let people start living and not surviving. Let people have extra income,” he advised.

Highlighting the disproportionate levels of poverty in the northern region, he urged lawmakers to be more considerate when discussing tax increases, stating, “Tax those people who can afford it. Those who can afford the taxes in Nigeria are not even paying for them.”

The senator also expressed his intention to actively campaign against the proposed tax increase, underscoring that the impact of such a measure would not be limited to the north but would affect the average Nigerian.

“I’m not saying people should not pay tax, but don’t tax people that are barely surviving. Let the tax authority concentrate on those that are supposed to pay tax,” he concluded.

This discussion comes against the backdrop of Nigeria facing its worst economic crisis in decades, following a series of reforms introduced by President Bola Tinubu in 2023.

As the National Assembly considers this significant tax proposal, Ndume’s stance highlights the growing concern among lawmakers regarding the impact of taxation on the nation’s most vulnerable citizens.