Action Aid wants FG to shelve VAT increase, strengthen anti-corruption institutions
Action id Nigeria, a non governmental organisation committed to poverty reduction in Nigeria, has urged the President Mohammadu Buhari administration to shelve the planned increase in the value added tax from five percent to 10 percent.
Instead, the body recommended that other revenue avenues should be explored as such the removal of petroleum subsidy which does not benefit the populace. It said increasing the VAT will lead to reduced consumption spending and undermine the economic recovery efforts.
“If VAT increase were to be implemented by the government, several measures should be taken to ensure that the objective of the increase is realised. An instance is the provision of the relevant technology to ensure proper monitoring, collection and elimination of leakages. The VAT increase could be varied relative to the kind of goods/services being purchased, since the effect on the poor would be greater than on the rich. e.g. higher VAT rate on luxury items”, it advised.
Actionaid also urged the government to employ a more strategic approach in its anti corruption crusade by strengthening the institutions to make them more efficient in service delivery. It said Nigeria needs strong institutions capable of independent interpretation and implementation of public policy objectives, adding that the anti-corruption fight should go beyond the focus on the politicians but also be extended to the public servants.
Speaking on the just concluded elections, it called on the government to review the electoral law in preparation to the 2023 elections to correct the observed lapsed witneesed during the conduct of the elections.
“Is evident that Nigeria’s electoral act and other related electoral laws need a total review in preparation for the 2023 general elections. As much as possible, our electoral process needs to be automated for better outcomes and value for money”, it said.
The NGO also expressed its support for the call for increased budgetary allocation and prompt release of funds to lift the nation’s education sector from the doldrums, adding that the welfare of academic and non-academic staff, at all levels should be taken more seriously to increase their productivity, thereby adding more value to the sector.
On infrastructure, Actionaid said Nigeria needs to tackle the challenge of infrastructure by providing the proper funding and cracking down on the embezzlement of funds earmarked for public infrastructure. Nigeria needs more power and better roads in order to stimulate our ailing economy.
It called for better welfare for workers in these sectors to be paid well, and those with good skills and strong ethics should be rewarded. Citizens should engage the duty bearers through peaceful movement, keeping the government on its toes on how important power supply is to the country.
To stem corruption and increase foreign direct investment, it said there should also be more investment in modern infrastructure which will boost the economy. Single digit interest rate facilities should also be applied to starter entrepreneurs with a view to stimulating the economy.
iv. The Federal Government needs to uphold social justice by demonstrating commitment and zeal towards the protection of lives and property as enshrined in the constitution by utilizing cutting-edge information technology for intelligence gathering to make crime and criminality difficult to perpetrate.
v. We lend our voice again to the call for increased budgetary allocation and prompt release of funds to lift our education sector from the doldrums. The welfare of academic and non-academic staff, at all levels should be taken more seriously to increase their productivity, thereby adding more value to the sector.
vi. Nigeria needs to tackle the challenge of infrastructure by providing the proper funding and cracking down on the embezzlement of funds earmarked for public infrastructure. Nigeria needs more power and better roads in order to stimulate our ailing economy. The workers in these sectors should be paid well, and those with good skills and strong ethics should be rewarded. Citizens should engage the duty bearers through peaceful movement, keeping the government on its toes on how important power supply is to the country.
vii. The factors and circumstances that perpetuate the inadequate representation of women in Nigerian society, which pose serious threats to Nigeria’s quest for democratic consolidation and sustainable development need to be addressed by the incoming administration for inclusion. The undue dominance of men in the socio-political sphere, including imbalances in political appointments is unacceptable.
viii. Stiff sanctions should be in place to stem corruption and increase foreign direct investment in Nigeria. For this to happen, there should also be more investment in modern infrastructure which will boost the economy. Single digit interest rate facilities should also be applied to starter entrepreneurs with a view to stimulating the economy.
Regards