The National Leader of the All Progressives Congress (APC), Bola Tinubu on Saturday, March 28; urged the Federal Government to stop the collection of the Value Added Tax immediately due to the raging Covid-19 pandemic.
1st News had reported that the administration of President Muhammadu Buhari had last month increased VAT from five percent to 7.5 percent.
However, Tinubu said the government must reduce the sufferings of Nigerians by introducing tax cuts while the Central Bank of Nigeria must reduce interest rates.
Tinubu said this in a statement he wrote in commemoration of his 68th birthday.
He wrote, “Government should announce a tax credit or partial tax reduction for companies or firms. VAT should be suspended for the next two to four months. This will help lower import costs and protect against shortages.
“We need to protect people from food shortages and high prices. As such, we must quickly improve farm-to-market delivery of agricultural produce.
“Also, the government should initiate a crash program to decrease spoilage of agricultural produce by the construction of storage facilities in local marketplaces in and around major cities and towns throughout the country.”
Also, Tinubu charged the Federal Government to print more naira notes in order to save the economy from collapse.
In a statement he personally signed to mark his 68th birthday; the ex-Lagos State governor implored the federal government to take a cue from the United States Federal Reserve which printed more dollars in order to boost the economy.
Tinubu said: “Already, the price of oil has fallen to less than $30 a barrel. This will bring a dollar shortfall. This does not, however; necessitate a corresponding shortfall in public sector naira expenditures.
“The US controls dollar issuance. We control naira issuance as is our sovereign right. Just as America has used its sovereign right to issue its currency to stave economic disaster; so too may Nigeria issue naira for the same purpose.”