The Digest:
Senator Adams Oshiomhole has stated that resistance to paying Value Added Tax (VAT) is uniquely prevalent in Nigeria, arguing that tax compliance must be strictly enforced. The former Edo State governor described President Bola Tinubu’s tax policy as progressive, designed to place a greater burden on high-income earners while offering exemptions to low-income Nigerians. Oshiomhole emphasized that taxation funds government revenue and that deliberate tax evasion should be treated as a criminal offence punishable by imprisonment. He also questioned why Nigerians readily pay VAT abroad but resist it domestically.
Key Points:
- Oshiomhole’s remarks reinforce the government’s push for stricter tax compliance amid ongoing revenue challenges.
- His framing of VAT as targeting luxury goods aims to counter public perception of the tax as burdensome to the poor.
- The call for imprisonment for tax evaders signals a potential shift toward more aggressive enforcement under current fiscal reforms.
- The comparison to international VAT compliance highlights inconsistencies in public attitudes toward taxation in Nigeria.
- The statement may intensify debates on equity, transparency, and the social contract between citizens and the state.
Sources: The Cable
