IMF’s Proposed Telecoms And Petrol Taxes Are Anti-People

The Editor-In-Chief of Good Governance Nigeria, Tony Ademiluyi has said that the recommendation by the International Monetary Fund (IMF) of new taxes on telecommunications and petroleum is anti-people, as it would increase the misery of the 140 million poor people in Nigeria.

Ademiluyi said that Nigeria can still increase its revenue base without adding fresh taxes, which will further impoverish the people. According to the good governance advocate, tax collection rose by 180 percent in the last three years, and a fresh taxation will literally make life a living hell for the hapless masses who are already living below the breadlines.

He argued that Nigerian businesses are already bogged down by what he described as “hidden taxes,” including high borrowing costs, unreliable electricity, multiple levies imposed at different levels of government, foreign exchange volatility and security-related expenses.

He said that commercial lending rates exceeding 35 per cent and soaring energy costs have significantly increased the cost of doing business, warning that additional taxes could discourage investment and slow economic growth.

He critically questioned the reason for the IMF’s tax-hike advice. He further warned that taxing telecommunications would undermine digital inclusion and financial innovation, while additional fuel taxes could ripple through the economy by increasing transport costs and driving up food prices.

Calling on the government to prioritise economic recovery over new taxation, Oye said Nigeria should focus on creating an environment that enables businesses to grow and create jobs instead of placing additional burdens on consumers and entrepreneurs.

He called on the Nigerian government to outrightly reject the advice as it is not in the best interest of the long-suffering people.