Politics

Atiku Reacts to Tinubu’s VAT Increase, Warns of Economic Downturn

Published by Tope Fakinlede on September 8th, 2024.

Atiku Reacts to Tinubu’s VAT Increase, Warns of Economic Downturn

Atiku and Tinubu

Former Vice President Atiku Abubakar has strongly criticized President Bola Tinubu’s administration over the recent increase in Value Added Tax (VAT), warning that it could severely impact the Nigerian economy.

Atiku argued that the decision to raise VAT from 7.5% to 10% is ill-timed, especially given the recent substantial increase in the price of Premium Motor Spirit (PMS) announced by the Nigerian National Petroleum Company Limited (NNPCL). In a statement posted on his X account, Atiku labeled the VAT hike as a harmful policy that will exacerbate Nigeria’s economic struggles and deepen the cost of living crisis for its citizens.

He accused Tinubu and his team of worsening the plight of ordinary Nigerians while indulging in personal luxuries, such as renovating villas and acquiring new jets and vehicles. Atiku criticized the administration’s approach, suggesting that it neglects the dire economic realities faced by many.

The PDP’s 2023 presidential candidate highlighted the negative effects of rising taxes and interest rates on businesses and employment, noting a significant decline in the manufacturing sector’s GDP contribution since Tinubu took office.

Atiku also expressed concern over a new policy announced in August that allows duty-free importation of agricultural commodities like wheat, maize, and paddy. He argued that this policy undermines local farmers, who face stiff competition from cheaper imports, and threatens Nigeria’s food security and agricultural sector.

He concluded by urging Tinubu and his advisers to focus on developing sustainable solutions to address Nigeria’s economic challenges rather than implementing policies that may lead to further instability.