Proposed VAT increase to 10%, punitive, insensitive, says Atiku

Former Vice-President of Nigeria Atiku Abubakar has condemned plans by the Federal Government to increase the value-added tax (VAT) from 7.5 per cent to 10 per cent as a punitive to businesses currently facing deterioration.

In a social media post on Sunday, Atiku described the move as a “regressive and punitive policy”.

“President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5% to 10%, even as the NNPCL has announced a soaring PMS price increase at the pump,” he said.

“This move unveils a new era of regressive and punitive policies, and its impact is destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.

“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses!

“Tinubu’s actions reflect a profound insensitivity to the plight of the less fortunate as he indulges in the opulent renovation of villas and the acquisition of new jets and vehicles for himself and his family.

“One need not be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future.”

He noted that the continued rise in taxes and interest rates had proved “excessively onerous, debilitating businesses of all sizes and leading to job losses while intensifying the suffering of the poor”.

Atiku also said the introduction of the policy “jeopardises job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development”.

“President Tinubu and his advisers would be wise to redirect their efforts towards crafting sustainable solutions to the systemic shocks afflicting the economy rather than compounding the crisis with measures destined to ignite further turmoil,” he said.

The former vice-president said the manufacturing sector had endured “relentless strife since Tinubu’s ascendancy”, with its contribution to the gross domestic product (GDP) “diminishing by over 20% since December 2023, as reported by the NBS”.

Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, on May 8 said there was a need to increase the VAT rate.

He also said the committee had proposed adjusting the sharing formula for VAT.

According to section 40 of the VAT Act, the federal government gets 15 percent of the tax revenue, states share 50 percent, and local governments share the balance of 35 percent.

However, Oyedele said the committee is recommending reduction of the Federal Government’s share from 15 percent to 10 percent.

Fuel scarcity lingers as NNPC delays Dangote petrol supply, independent marketers ready to buy

Going by the projection of Alhaji Aliko Dangote, owner of the brand new Dagote Refinery, sufficient petrol from that facility should have been delivered at various filling stations across the country since last Thursday.

“Our PMS can be in filling stations within the next 48 hours, depending on NNPCL,” he said.

This was expected to douse tension and ease the prolonged fuel scarcity being experienced nationwide.

Dangote who spoke in Lagos last Tuesday with a promise of commencing the supply of premium motor spirit (PMS) otherwise known as petrol within 48 hours however gave a proviso – that the Nigerian National Petroleum Company Limited would pick up the product from his refinery at a price agreeable to the two parties.

Dangote could not disclose the pump price of the product, saying the Federal Executive Council would determine how much he would a litre of petrol.

But five days after Dangote spoke at the launch of his refinery’s petrol into the market, the nation still awaits the promised PMS due to delay by the NNPC.

The NNPC, which had earlier indicated its willingness to buy off the Dangote fuel and distribute to marketers as it currently does has however made a U-turn.

It said in Saturday that it would only pick up the fuel if found to be cheaper than that of international market.

“NNPC Ltd has no desire or intention to become the distributor for any entity in a free market environment, and therefore, the notion of becoming a sole off-taker does not arise,” it added.

While no concrete agreement has been reached between NNPC and Dangote on the issue, the Independent Petroleum Marketers Association of Nigeria on Saturday said it would buy PMS from Dangote at any price, even if the NNPC refused to buy.

A report by Sunday PUNCH quoted National President of the association, Abubakar Maigandi, as saying the independent marketers were ready to patronise Dangote.

He said, “Whatever the case, if Dangote starts selling his product, we are going to patronise him; if at all he wants to do business with us.

“We are ready to buy at any price because the NNPC is saying that they don’t want to involve themselves in fixing prices.

“So, at any price that he wants to sell, we are ready to buy and discharge and sell at a good price.”

Members of IPMAN are said to own about 80 per cent of the filling stations in Nigeria.

Meanwhile, fuel scarcity has not abated nationwide despite the promise by the Minister of State for Petroleum Resources (oil), Heineken Lokpobiri, that petrol would be made available by this weekend.

He said after a meeting with Vice-President Kashim Shettima in Abuja on the fuel crisis, “Between now and the weekend, there will be availability of products across the length and breadth of the country.

“We believe that by the time there is availability of products across the country, the price itself will stabilise.”

Lokpobiri urged Nigerians not to resort to panic buying, stressing that there is sufficient petroleum product to meet the nation’s demand.

Queues have remained at few filling stations dispensing petrol to motorists as many people spend long hours waiting for their turn.

While petrol is being sold between N855 and N920 per litre by the NNPC and major marketers, independent marketers are selling between N1,000 and N1,200.

The price is expectedly higher at the black market. In Lagos, a five-litre of petrol is offered between N7,000 and N8,000.

Opay, Moniepoint, others begin FG levy on transactions above N10,000 tomorrow

The federal government has imposed a deduction of N50 Electronic Money Transfer Levy (EMTL) from every inflow of N10,000 and above received by customers of Fintech companies, including Opay, Moniepoint, and others.

In a notice to its customers on Saturday, the online payment platform stated that the charges in line with the Federal Inland Revenue Service (FIRS) regulations, will take effect from September 9, 2024.

“Dear valued customers, please be informed that starting September 9, 2024, a one-time fee of N50 will be applied for electronic transfer of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service regulations,” the notice read.

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The company clarified that the charges are requirements from the President Bola Tinubu-led government and not a source of revenue for the payment platform.

“It is important to note that OPay does not benefit from these charges in any way as it is directed entirely to the Federal Government,” it added.

Similarly, Moniepoint, in a terse notification to its customers on Saturday, said: “A N50 fee would be charged on inflows you receive of N10,000 and above from Monday, September 9, 2024.

“Your BRM is available to answer questions you might have.”

Opay, Moniepoint, others begin FG levy on transactions above N10,000 tomorrow