Nigerians are not happy that President Buhari signed the Finance Bill yesterday. As Nairametrics reported, the President announced the signing via his Twitter handle. He told Nigerians that he was pleased with the development which would, among other things, effect the increase of VAT from 5% to 7.5%.
To catch up on that news and everything the Finance Bill entails, please follow this link. In the meantime, Nigerians are not happy over this development. So, let’s talk about that.
Outrage on Twitter: A lot of those reacting to this news are worried that implementing the Finance Bill will make life harder for the average Nigerian. As expected, the outrage stemmed mainly from the VAT increase.
One Twitter user named Chinanu Ndumele even summarised what he believes would happen now that the government has decided to increase VAT. According to him, the VAT increase would make it easier for corrupt government officials to find money to loot. Meanwhile, companies would hike the prices of their goods, even as the common man suffers.
3 THINGS D@ MUST HAPPEN WITH D NEW 7.5 VAT.
1, Politicians will've more money to loot.
2, Companies will increase d prices of commodities & services 2 recoup d new VAT.
3,There'll be more suffering 4 d governed.
FACT: Taxes are meant 4 d rich but it's d poor, who pay it.
— chinanu Ndumele CN (@CN4real) January 14, 2020
Another Twitter user wondered why President Buhari was so eager to increase VAT from 5% to 7.5% but was reluctant to increase minimum wage.
So @MBuhari signed in a financial bill into law with 7.5% VAT but cannot implement minimum wage, So even the peanuts the civil servant are receiving will still be reduced by 2.5%
— Chidiebele (@Baba___Dee) January 14, 2020
The government had implied that the VAT increase is not going to affect average Nigerians. As promising as this sounds, Nigerians do not believe it. One Twitter user (Farin Wata) argued that even if the increase is meant for only big companies as Nigerians were meant to believe, such companies would still want to recover the added costs by simply increasing the prices of their goods and services. Unfortunately, this invariably affects the average Nigerian.
7.5% VAT increase is said to be for the middle and upper class citizens as well as big companies valued at ₦25m and above, so they said the increment will not affect the common man.
I wonder if those companies products are to be exported and are not mean for Nigerian markets.
— Farin Wata (@AbuBakr_MaShI) January 14, 2020
In the meantime, Nigerian companies are allegedly getting ready to “deal” with consumers, following the VAT increase.
* 7.5% VAT *
Companies to Nigerian Consumers: pic.twitter.com/sawjjYfPU0
— Revolutionary Benjamin (@zlatanbenjamin) January 14, 2020
For anyone thinking this development could encourage inflation and ultimately result in devaluation, you are not alone. And Raheem Azeez has a suggestion for you.
So 7.5% Vat is now official
This means prices of things will definitely increase
And as a result of such, there are chances Naira might fall(I don't even know why I just feel this might happen)
So stashing cash in dollars seems like a nice idea then
— Raheem Azeez (@Biodun_codegeek) January 14, 2020