Halt VAT increase, masses will be worse hit, Ndume urges FG

The former Senate Leader, Ali Ndume, said the Federal Government should stop plans to increase Value Added Tax from 5% to 7.2%.

According to Ndume, the masses will be worst hit should the government go ahead to increase VAT.

“I feel that increase in VAT is going to have a spiral effect; and it is going to affect the poor more.

“It is true the government is not expanding the revenue base or the tax.., that is why I am thinking that anybody that is using telephone here would want to just talk and pay for it of course but right now, none of you will say this is what I am paying for telephone; if it tells you one minute remaining, you start looking for any recharge card.

“But if you are tasked on that, you won’t say you want to talk again because you are tasked.

“The effect will be that every commodity even transportation from one point to another will increase and who is going to pay or who is going to feel it more; it is the poor; so that is why I am saying that we should introduce Communications Service Tax and people will pay for it sometimes even not knowing.”