Armstrong Allahmagani, Bauchi
The Coalition of Northern Groups has kicked against the planned increase of the Value Added Tax by the Federal Government as a way of revenue generation. They instead, called for a downward reduction of the VAT from the current 7.5% to 3% in view of the prevailing economic hardship Nigerians are facing.
The National Coordinator of the CNG, Jamilu Charanchi, who made the group's position known while speaking with journalists at a press briefing held on Friday in Bauchi, argued that given the current economic hardship faced by Nigerians, the government should not be contemplating worsening the situation.
He called on the Federal Government to focus on supporting Small and Medium Enterprises (SMEs) rather than suffocating them with unnecessary taxes and exploitation.
He said: "That with soaring food inflation now at about alarming 40% which has made millions of people food insecure, we not only reject any scintilla of thought that proposes an increase in VAT but proposed a reduction from 7.5% to 3.%. The coalition strongly warns against any attempt at increase given the prevailing harsh economic conditions that make life miserable for Nigerians.
"That this is a time that the Federal Government should encourage and support Small and Medium Enterprises (SMEs) rather than suffocating them with unnecessary taxes and exploitation.
"That the Coalition further rejected the proposed centralization of tax collection which would stop NigeriaCustoms Service from collecting excise duties and import VAT as well as make the new Nigeria Revenue Service (NRS) the sole collector of Royalties from the upstream oil sector.
"That the purported 13% of the taxes that are said to be paid for consultancy services in the name of reform is unacceptable, as it appears to prioritize personal gains of select few who feed fat on our commonwealth over the collective good of the people."
Charanchi said that the ball is in the court of the national assembly as all eyes are on them to be brave and stand firm to protect the interests of the down trodden just as governors have courageously fought their battle which led to a new, fair and acceptable VAT sharing formula.
He vowed to mobilize northern youth against lawmakers particularly those from the north who continue to support the bills without the amendments carried out to address the loopholes identified.
"We are categorical to all senators and members of the house of representatives particularly those from the North that are supporting the bills without recourse to amending the identified loopholes and anomalies or, being indifferent, is a crime against the people, to the people and for the people which we would not hesitate to mobilise the people to confront them at the appropriate time.
"The CNG reiterates its calls on the legislators to ensure that all controversial aspects of the bills that are detrimental to Nigerians are thoroughly and carefully examined and expunged before considering any further action," he said.
He added that "the CNG unequivocally vows to continue to mobilise against the defunding of TETFUND, NASENI, and NITDA as these critical institutions play pivotal roles in advancing education, innovation, and technological development in Nigeria.
"The CNG also completely rejects taxing Family Wealth or Inheritance as it unjustly burdens families, negate religious tradition and contradicts cultural values."
The CNG National Coordinator commended the Nigerian Governors' Forum (NGF) for their doggedness in championing a more equitable VAT sharing formula.
According to him, the revised formula of 50% based on equality, 30% on derivation, and 20% on population is a welcome departure from the earlier, lopsided proposal of 20% on equality, 20% on population, and 60% on derivation.
"The governors have, collectively, done extremely well in reversing the imposed formular to a more acceptable win-win VAT formula among the three tiers of government. This adjustment will foster unity and fairness, ensuring no region is left behind in Nigeria's development trajectory.
"The CNG further observed that while people celebrate the revised VAT formula, there are other controversial issues in the bills that must be tackled with all seriousness. The CNG, however, remains deeply concerned about such controversial aspects that pose severe implications for ordinary Nigerians," he said.
Charanchi said that while monitoring the development closely, the CNG reaffirms its commitment to opposing all anti-people policies that increase economic hardships for Nigerians noting that "the coalition remains steadfast in advocating for policies that prioritize transparency, equity, and the well-being of citizens."
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