The senator representing Edo North, Adams Oshiomhole, has said opposition to value added tax (VAT) is largely a Nigerian phenomenon.
He made the remark on Wednesday while appearing on Channels Television’s ‘Politics Today’, where he explained that the recently introduced tax laws are structured to safeguard low-income earners.
The former Edo State governor said the tax framework reflects progressive governance by placing a heavier responsibility on high-income earners while easing the burden on those with lower earnings.
“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 argued that poor understanding of taxation is a major reason many Nigerians oppose VAT and other forms of tax.
“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.”
The senator stressed that tax compliance must be firmly 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.
He further explained that VAT is mostly charged on luxury and non-essential items, not basic necessities.
Oshiomhole criticised Nigerians who resist paying VAT at home while willingly complying with similar taxes overseas.
“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.”