THE newly increased Value Added Tax (VAT) of 7.5 percent will affect all Nigerians, but some will feel the impact more than others, financial analysts have said.

The ordinary Nigerian seems to be the target of the 7.5 percent VAT. The poor Nigerians, like their rich counterparts, consume other goods and services, which are not excluded from the VAT.

According to the World Poverty Clock, 48 percent of the total population of Nigeria lives in extreme poverty. This 48 percent refers to 95.9 million Nigerians whose standard of living is way below average.

More than the rich, the ordinary Nigerians are going to be badly affected by the new VAT regime that took effect on February 1.

The National Bureau of Statistics (NBS) says Nigeria’s unemployment rate stands at 23.13 percent as of the third quarter of 2018.

Despite promises to create jobs by President Muhammadu Buhari’s administration, the unemployment rate has continued to grow. Unemployment Rate increased to 23.13 percent in the third quarter of 2018 from 22.70 percent in the second quarter of 2018, NBS said.

Analysts say the Buhari government inflicts more hardships on the ordinary Nigerian with the new VAT.

They believe that Nigeria under his watch generated enough revenue to cater to the needs of the country without having to impose a new tax.

Seyi Kolawole, a research analyst at NASD PLC, said in an interview with The ICIR that, Nigeria has generated enough resources internally to cater to citizens rather than bother the already impoverished citizens with an additional tax.

“We generate a lot internally to cater to everyone than to bother us with a tax increase, every other African country looks up to us for wealth,” he said.

READ MORE: https://www.icirnigeria.org/how-96-million-nigerians-living-in-extreme-poverty-will-be-affected-by-7-5-vat/