VAT resistance is a Nigerian thing… tax evaders should go to jail – Oshiomhole

Adams Oshiomhole, senator representing Edo north, says resistance to value added tax (VAT) is peculiar to Nigeria.

Speaking on Wednesday during his appearance on Channels Television’s ‘Politics Today’, Oshiomhole said the newly enacted tax laws are designed to protect low-income earners.

The former Edo governor added that the structure of the tax policy reflects the ideals of a progressive government by shifting a greater burden to high-income earners.

“The facts on the ground show that President Tinubu’s tax policy is consistent with the values of a progressive government,” he said.

“This is a progressive tax policy that places a higher burden on those who earn more while offering tax exemptions to those who earn less.”

Oshiomhole said misunderstanding of taxation fuels public opposition to VAT and other levies.

“It is only in Nigeria that people talk about government using money or claim that government earns money on its own,” he said.

“Governments do not earn money; citizens earn income, and the government taxes those earnings — whether individual or corporate.

“The sum of these taxes determines the annual revenue of the state.”

Oshiomhole insisted that tax compliance should be strictly enforced.

“Taxes must be paid by those who are supposed to pay it and must be ruthlessly collected. It’s not a civil obligation. It’s a criminal thing if you breach the tax law, and it has to send people to prison if they decline or doctor the tax books. That is what serious governments should do,” he added.

The Edo senator said VAT largely applies to luxury and non-essential items rather than basic goods.

He faulted Nigerians who oppose VAT payments locally while complying with similar taxes abroad.

“When you and I choose to buy luxury or imported items, then we pay VAT. If you don’t consume luxury, you don’t pay VAT. That is why VAT is fair,” the senator said.

“Nigerians pay VAT in London, in America, in Dubai, sometimes up to 20 percent, and nobody complains. Why is it a problem when it is in Nigeria?

“Everywhere in the world, when you buy non-food items, you pay VAT.

“Nigerians pay VAT in America, London, Dubai, yet they resist paying VAT here in Nigeria.” (The Cable)