Says increasing VAT will increase hardship
Insist next level is not just a trendy phrase to be discarded
Advises government to work for the people
“I render these observations not to frighten anyone but because they ring true. Wisdom requires that we accept reality instead of obscuring it under the cloak of wishful thinking. We must build policies that interact with the world as it is, and not with the world as it should be.
“We must recognize these harsh economic tidings as advance warnings to the wise. Hence we must think deeper and work harder for our people in Nigeria.
“I would be a most wicked friend if I knew a storm was approaching yet convinced you to ready your family for an outdoor picnic under the tallest tree. The truth is always a more valuable guardian than fantasy.
National Leader of the All Progressive Congress, Bola Ahmed Tinubu on Thursday, kicked against the proposed increase in value-added tax, VAT by the federal government to fund the new minimum wage which was signed into law by Buhari yesterday.
Tinubu, while speaking at a colloquium in commemoration of his 67th birthday in Abuja, described Nigeria as a country still in the process of defining itself politically and economically.
He advised the government against increasing the Value Added Tax (VAT). According to him, any increase in VAT will reduce the spending capacity of the people and might increase hardship. Recalls that the Minister of Budget and National Planning, Senator Udo Udoma; and the Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, had said the Federal Government was considering an upward review of VAT by 50 per cent following the approval of N30,000 as minimum wage by the National Assembly.
Both Udoma and Fowler dropped this hint, when they appeared before the Senate Committee on Finance.
They said the increment was to, among others, enable the Federal Government to fund the new national minimum wage, while Fowler had noted that the proposed payable VAT by Nigerians based on the increment would actually be between 35 per cent (6.75%) and 50 per cent (7.25%). Although President Buhari was not physically present at the event, as Vice President, Yemi Osinbajo stood in for him, Tinubu seized the forum to state that emulating the western world over five decades down the line may be counter-productive and may be jeopardizing sincere efforts to evolve as a better nation.
“You see, Next Level is not just a trendy campaign phrase to be quickly discarded once victory has been achieved.
“It has a much deeper and more profound meaning, perhaps even more than its authors contemplated. This is because we are a nation still in the process of defining itself politically and economically.“In this process, it is tempting and easy to borrow indiscriminately from those nations that seem to have mastered the art of democratic governance and to have achieved economic prosperity.
“However, to achieve durable progress, we can’t afford to work hard but in mindless devotion to the ways of other nations. “This truth is particularly acute when these very nations now face fundamental political and economic questions that cast doubt on the social utility and viability of the economic model under which they have travelled for the past 50 years.
“Forecasters are predicting a global recession within the next 12-18 months. “I render these observations not to frighten anyone but because they ring true. Wisdom requires that we accept reality instead of obscuring it under the cloak of wishful thinking. We must build policies that interact with the world as it is, and not with the world as it should be.
“We must recognize these harsh economic tidings as advance warnings to the wise. Hence we must think deeper and work harder for our people in Nigeria.
“I would be a most wicked friend if I knew a storm was approaching yet convinced you to ready your family for an outdoor picnic under the tallest tree. The truth is always a more valuable guardian than fantasy.
“Mr. President, you have warned several times that the storm that approaches is not inevitable. It is born of human folly and reckless greed. This means that it can be rectified by human wisdom and prudential action. “At this point we must recognize a fundamental truth of our time. The economic model upon which the world is built is unraveling. The coming downturn is just a symptom of this great upheaval. The global economy faces either genuine reform or gathering ruin.“Because of this, the economic cohesion of Western nations is weakening. Income inequality has reached levels unseen in a century. The middle class in most countries is shrinking,” the APC National Leader stated.
According to Tinubu, the pursuit of the next level slogan of the ruling party cannot be achieved by blindly following the economic path of other nations.
He said that would be tantamount to racing to live in a building just as its long-term occupants were frantically rushing out, screaming that the edifice was mean and crumbling. “If we are smart, we dare not enter”.
“Instead, we must construct our next level on a progressive ideology and vision that will take our people out of penury, diversify our economy more aggressively, and empower and retrain our youth. “To be the great nation we purport to be, we must reform and retool our economy according to our definition of what is best for our own people. We cannot assign that duty to anyone else.
“Here, I must ask for a little liberty to amend the fine title of this colloquium: “Work for the people.” We must do more than simply work for the people.
“Government must “work for the people in a way that enables them to better work for themselves.”
“We must amend our basic ideas about the economy. We must divorce ourselves from our fixation with GDP rates and similar statistics. These things were initially intended to be indicators, suggestive measurements. However, we have misinterpreted these road maps by treating them as if they were the destination itself,” he stated.
