Jonathan Plans 100 Percent Increase In VAT

PHOTO: DR. JONATHAN GOODLUCK.

ABUJA, April 22, (THEWILL) - The Federal Government has concluded plans to increase the Value Added Tax (VAT) charged on consumer goods from the current 5 percent to 10 percent.

This was made known by the Minority Leader of the House of Representatives Honourable Mohammed Ali Ndume in an interview at the National Assembly yesterday.

The opposition leader however condemned the plan vowed to mobilize Nigerians to resist it.

Ndume hinted that Acting President Goodluck Jonathan told the leadership of the National Assembly about the plan to increase the commodity tax on Tuesday night when he briefed them on his reservations on the 2010 budget as passed.

According to him, Jonathan explained that the move to increase the tax is to bring the nation’s tax regime at par with other West African countries which charge 10 percent as VAT.

However kicking against the planned increase, Ndume said the opposition will resist it in the House adding that Nigerians will be mobilized to resist it as well.

Insisting that the proposed VAT increase is anti-people, Ndume said such would worsen the hardship in the nation as it will translate to increases in the price of commodity goods across the country.