Adams Oshiomhole, senator representing Edo North, says resistance to value-added tax (VAT) is peculiar to Nigeria.
Speaking on Wednesday during his appearance on Channels
Television’s ‘Politics Today’, Oshiomhole said the newly enacted tax laws are
designed to protect low-income earners.
The former Edo governor added that the structure of the tax
policy reflects the ideals of a progressive government by shifting a greater
burden to high-income earners.
“The facts on the ground show that President Tinubu’s tax
policy is consistent with the values of a progressive government,” he said.
“This is a progressive tax policy that places a higher
burden on those who earn more while offering tax exemptions to those who earn
less.”
Oshiomhole said misunderstanding of taxation fuels public
opposition to VAT and other levies.
“It is only in Nigeria that people talk about government
using money or claim that government earns money on its own,” he said.
“Governments do not earn money; citizens earn income, and
the government taxes those earnings — whether individual or corporate.
“The sum of these taxes determines the annual revenue of the
state.”
Oshiomhole insisted that tax compliance should be strictly
enforced.
“Taxes must be paid by those who are supposed to pay it and
must be ruthlessly collected. It’s not a civil obligation. It’s a criminal
thing if you breach the tax law, and it has to send people to prison if they
decline or doctor the tax books. That is what serious governments should do,”
he added.
The Edo senator said VAT largely applies to luxury and
non-essential items rather than basic goods.
He faulted Nigerians who oppose VAT payments locally while
complying with similar taxes abroad.
“When you and I choose to buy luxury or imported items, then
we pay VAT. If you don’t consume luxury, you don’t pay VAT. That is why VAT is
fair,” the senator said.
“Nigerians pay VAT in London, in America, in Dubai,
sometimes up to 20 percent, and nobody complains. Why is it a problem when it
is in Nigeria?
“Everywhere in the world, when you buy non-food items, you
pay VAT.
“Nigerians pay VAT in America, London, Dubai, yet they
resist paying VAT here in Nigeria.”
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com