Adams Oshiomhole, senator representing Edo north, says opposition to value added tax (VAT) is largely a Nigerian phenomenon rooted in poor understanding of how governments generate revenue.
Speaking on Wednesday during an appearance on Channels Television’s ‘Politics Today’, Oshiomhole said the recently enacted tax laws are structured to shield low-income earners while ensuring fairness in revenue collection.
The former Edo governor explained that the tax framework reflects a progressive approach by placing a heavier responsibility on those with higher incomes.
“The facts on the ground show that President Tinubu’s tax policy is consistent with the values of a progressive government,” Oshiomhole 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.”
He argued that resistance to VAT and similar levies is driven by misconceptions about the role of taxation in governance.
“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 strict enforcement is essential to ensure compliance with tax laws.
“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 north senator maintained that VAT is targeted mainly at luxury and non-essential goods rather than basic items.
He criticised Nigerians who oppose VAT at home but readily pay similar charges when shopping 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,” Oshiomhole 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.”