Proposed consumption tax will cause more harm than good -Experts

• Published date: 14 January 2023
• Publication title: Nigeria - The Nation

THE proposed 20 percent consumption tax being mooted by the federal government will cause rippled negative effects on the socioeconomic fabric of the country, experts have said.

Speaking with a cross section of economic and financial pundits at the weekend, they informed that the proponents of the planned 20 percent consumption tax increase don't have the interest of populace at heart.

Firing the first salvo, Teslim Shitta-Bey, the Chief Economic Adviser at Proshare Nigeria, said the arguments been advanced for the planned imposition of the 20 percent consumption tax is not only faulty but stands truth on its head.

According to him, rather than look at the issues dispassionately the government apologists have resorted to cheap blackmail by whipping up emotions.

'Those pushing the arguments for the increase in consumption tax are saying that the companies producing carbonated drinks are putting more sugar content,' he informed.

That argument, he reiterated 'Is baseless and of no effect.'

Pressed further, Shitta-Bey said there is any form of price increase for carbonated drinks people will look for alternatives.

'If you say because you don't want people to consume sugar you increase the price, you will be empowering the unregistered local producers like kunu or zobo drink vendors who you cannot manage and control. You will create a kind of a cobra effect, a situation...