{"id":357305,"date":"2025-02-28T06:46:18","date_gmt":"2025-02-28T05:46:18","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=357305"},"modified":"2025-02-28T06:46:18","modified_gmt":"2025-02-28T05:46:18","slug":"vat-increase-will-worsen-poverty-says-ex-finance-minister","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2025\/02\/28\/vat-increase-will-worsen-poverty-says-ex-finance-minister\/","title":{"rendered":"VAT Increase Will Worsen Poverty, Says Ex-Finance Minister"},"content":{"rendered":"<ul class=\"marker:text-textOff list-disc\">\n<li>\n<p class=\"my-0\"><strong>Dr. Yerima Ngama opposed a VAT hike, urging the government to improve tax collection efficiency and widen the tax base<\/strong><\/p>\n<\/li>\n<li>\n<p class=\"my-0\"><strong>He warned that raising VAT could worsen citizens&#8217; financial struggles and reduce consumer spending amid ongoing economic difficulties<\/strong><\/p>\n<\/li>\n<\/ul>\n<hr \/>\n<p data-pm-slice=\"1 1 []\">A former Minister of State for Finance, Dr. Yerima Ngama, has warned against increasing Value Added Tax (VAT) amid Nigeria\u2019s current economic difficulties. He argued that raising VAT now would worsen the financial struggles of citizens already impacted by President Bola Tinubu\u2019s fiscal reforms.<\/p>\n<p>Dr. Ngama made this statement on Thursday during a Public Hearing on Tax Reform Bills. The event, organized by the House of Representatives Committee on Finance, took place at the National Assembly Complex in Abuja.<\/p>\n<p>Speaking on behalf of the Arewa Consultative Forum (ACF), he rejected the proposed VAT hike, inheritance law, and the scrapping of agencies like TETFund, NASENI, and NITDA.<\/p>\n<p>He criticized the <a href=\"https:\/\/www.withinnigeria.com\/news\/2025\/01\/10\/northern-groups-demand-vat-reduction-to-3\/\">VAT<\/a> increase, calling it unfair to taxpayers. Instead of raising VAT, he urged the government to widen the tax base. He argued that despite increasing rates, collection efficiency remains a major issue.<\/p>\n<p>\u201cThe focus should be on improving tax collection, not raising rates. If only 30% of taxes are collected, increasing VAT won\u2019t help,\u201d Ngama stated.<\/p>\n<p>He recommended maintaining the current 7.5% VAT rate, citing its burden on businesses and individuals. While acknowledging the government\u2019s revenue needs, he cautioned that higher VAT could reduce consumer spending and slow economic growth.<\/p>\n<p>On VAT distribution, he suggested that the formula should be determined through political consensus rather than legislation.<\/p>\n<p>\u201cNot everything requires a law. Federal, state, and local governments should agree on VAT distribution through negotiations,\u201d he explained.<\/p>\n<p>Dr. Ngama also proposed limiting the authority of the National Revenue Service chairman. He noted that concentrating too much power in one individual could be counterproductive.<\/p>\n<p>\u201cThe chairman already has too many responsibilities\u2014appointing coordinating directors and chairing the NRS board. This is overwhelming,\u201d he said.<\/p>\n<p>Regarding the inheritance law, he urged the National Assembly to remove the section entirely and allow states and local governments to decide on the matter.<\/p>\n<p>He praised President Tinubu for creating a livestock ministry and suggested setting a goal for the minister.<\/p>\n<p>\u201cThe minister should aim to establish 40 world-class ranches nationwide by 2027,\u201d he concluded.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dr. Yerima Ngama opposed a VAT hike, urging the government to improve tax collection efficiency and widen the tax base He warned that raising VAT could worsen citizens&#8217; financial struggles and reduce consumer spending amid ongoing economic difficulties A former Minister of State for Finance, Dr. Yerima Ngama, has warned against increasing Value Added Tax [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":357308,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_override_bookmark_settings":{"override_bookmark_button":"0","override_show_bookmark_button":"0"},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[2],"tags":[87376,63917,15406,87377],"class_list":["post-357305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-dr-yerima-ngama","tag-minister-of-state-for-finance","tag-vat","tag-vat-increase"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - 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