Youth Party Urges APC to Resolve VAT Act Issues

The Youth Party has called on the ruling All Progressives Congress (APC) to address internal conflicts and divisions over the proposed VAT Act, urging the government to seek broader consultation before moving forward with the legislation.

While supporting the tax reform bills, the party criticizes the rushed and fragmented approach to their enactment through the National Assembly, warning of potential legal and political consequences.

A statement by Ayo Adio, Acting National Publicity Secretary, stresses that the lack of consensus within the APC and its governors threatens to undermine the proposed reforms.

The National Economic Council, which includes 36 state governors, has already called for the withdrawal of the bill, citing the need for further discussion.

The Youth Party points to the stark contradictions between top APC leaders, including the Senate President and his deputy, regarding the bill’s suspension, indicating a fractured approach to governance.

Amidst Nigeria’s growing fiscal crisis, marked by one of the lowest tax-to-GDP ratios globally, the Youth Party supports the tax reform efforts but warns that the VAT Act’s proposed provisions may not only be unconstitutional but also lead to unnecessary legal disputes.

The party suggests a more measured approach, proposing that the bills be passed in phases, starting with those that are less controversial, while the VAT bill undergoes extensive consultation to ensure legal and political alignment.

The Youth Party calls for a national conversation on the reform process to avoid further divisions and ensure that the reforms are both legally sound and politically feasible.