Delta state Coalition of Northern Groups Urges VAT Reduction to 3%, Cites…

By Peter Onyekachukwu, Kano

DELTA: The Coalition of Northern Groups (CNG) has called on the federal government to reduce the Value Added Tax (VAT) rate from 7.5% to 3%, citing severe economic challenges affecting 90% of Nigerians.

CNG National Coordinator, Comrade Jamilu Ali, made the appeal during a one-day national women’s conference held in Kano. The event focused on the controversial tax reform bills and their impact on northern Nigerian women and other vulnerable groups.

Comrade Ali criticized the current VAT rate, describing it as burdensome and insensitive to the plight of citizens.

“Why would you collect VAT at 7.5% when Nigerians are facing unprecedented economic hardship?” Ali asked.

He highlighted the sharp rise in inflation, which he said has pushed the cost of basic necessities beyond the reach of ordinary citizens.

“The inflation rate on essential goods is nearing 40%. A bag of rice now costs over N100,000, and electricity bills are unaffordable for many families. These anti-masses policies are worsening the suffering of Nigerians,” he added.

Ali expressed frustration with the proposed VAT hike by the tax reform committee, which reportedly suggested an increase to 15%.

“The committee chair previously admitted that Nigeria’s economy couldn’t handle a VAT increase, yet they now recommend a hike. The purchasing power of Nigerians has plummeted, and the exchange rate is crippling businesses,” he lamented.

Ali urged the National Assembly to amend the tax reform bills to reflect the needs of ordinary Nigerians.

“We call on lawmakers to protect the interests of citizens, especially women and future generations, by rejecting harmful policies,” he said.

The CNG coordinator also stressed the importance of educating market women and other vulnerable groups about the implications of the tax reforms.

“Many women are confused about the differences between taxes and levies. It is essential to create awareness and involve them in discussions about these policies,” Ali explained.

The group vowed to continue advocating for changes to the tax reform bills through peaceful and lawful means, insisting that the government must prioritize the welfare of its citizens.

“The government has a duty to alleviate the suffering of Nigerians. A reduction in VAT is one step in the right direction,” Ali concluded.

By Admin