Adebayo, LCCI boss, others make case for new VAT rate

DESPITE the welter of criticisms that have greeted the proposed increase in the Value Added Tax (VAT) from five percent to 7.2 percent by the federal government, some stakeholders think there is a lot of merit in the decision.

A cross-section of experts who spoke at the fifth Presidential Policy Dialogue, organised by the Lagos Chamber of Commerce and Industry (LCCI), including Minister of Industry, Trade and Investment, Chief Adeniyi Adebayo, said the new policy regime on VAT, if well implemented, will boost the economy.

“Government was not unmindful of the problems that would arise as a result of increase in VAT but it has taken that into consideration and has removed certain items and these items are the ones that would affect the poor people. The whole idea is to make richer people to pay more and make life easier for the poor people.”

According to him, government is determined to address the challenges facing the economy, noting that various government agencies were in continuous process of implementing initiatives and policies that address key areas of concern.

Also speaking at the event, the President of the LCCI, Mr. Babatunde Ruwase, noted that the new increase in VAT is an additional pressure on businesses and could also affect consumer purchasing power.

“Nigerians have not been able to see value for money. We have been paying so much money but we are not seeing value. There are so many levies but no accountability of such levies. That is why the average Nigerian does not believe he should pay more. If we can see result, see what government is doing with the money, Nigerians would be ready to pay.

But the situation we have today is that there is mistrust by Nigerians. We are not ready to pay more because the one we paid we can’t see what it was used for.”