Buhari Media Organisation (BMO) has berated the opposition Peoples Democratic Party (PDP) for allegedly raising false alarm over the Federal Government decision to increase the Value Added Tax (VAT).
The PDP had rejected the Federal Government’s plan to increase the VAT from 5 percent to 7.5 percent, calling on President Muhammadu Buhari to reverse the decision.
But the BMO said the PDP did not have a full understanding of the matter.
The pro-Buhari group accused the party of trying to undermine a patriotic and genuine effort of the present administration to raise the needed resources to address some of the major infrastructural needs of Nigerians.
BMO said the PDP was not genuinely worried that Nigerians could not bear the burden of the 2.2 percent marginal increase in VAT under the prevailing economic situation in the country.
Prior to the BMO reactions Nigeria’s Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed had told newsmen that the decision was to enable the government properly fund the new national minimum wage of N30,000.
“We will begin consultations and consultations will be at various levels in the country. So it includes consultations with the states, with the local governments, with the parliament as well as with the Nigerian public. For the VAT increase to take effect, there has to be an amendment to the VAT Act,” she said after the Federal Executive Council meeting presided over President Muhammadu Buhari.
“The expenditure for the year 2020 is in the total sum of N10.07 trillion. This is three percent less than the approved expenditure in the 2019 budget that has been passed into law.
“The total expenditure includes statutory transfers, non-debt recurrent expenditure such as salaries and pensions and also the social intervention Programme.”