Oshiomhole Advocates For Stringent Tax Collection Practices

Adams Oshiomhole, the Senator for Edo North, has urged for rigorous enforcement of tax regulations in Nigeria, asserting that failure to comply should result in severe repercussions.

In a conversation with Channels Television’s Politics Today, Oshiomhole pointed out that the pushback against value added tax (VAT) is unique to Nigeria, attributing this to widespread misunderstandings surrounding taxation.

He stated, “It is only in Nigeria that people claim the government uses money or earn income independently.”

“Governments do not generate revenue on their own; it is the citizens who earn income, and the government collects taxes from those earnings — whether from individuals or corporations. The total of these taxes dictates the annual revenue generated by the state.”

As a former governor of Edo State, Oshiomhole has underscored the necessity for strict adherence to tax laws.

“Taxes must be paid by designated individuals and must be collected without mercy. It's not merely a civil duty; breaching tax regulations is a criminal act, and offenders should face imprisonment if they refuse to comply or falsify tax documentation. That is the expectation from responsible governments,” he asserted.

Oshiomhole also supported the current tax framework of the country, arguing that it is designed to be beneficial for low-income earners.

“The prevailing conditions demonstrate that President Tinubu’s tax policy aligns with the principles of a progressive government. This tax framework places a heavier financial responsibility on higher earners while providing exemptions for those with lower incomes.”

On the debated issue of VAT, the senator clarified that the tax primarily affects luxury goods and non-essential items, rather than basic necessities.

“When you or I opt to purchase luxury or imported products, that’s when we incur VAT. If luxury items are not on your shopping list, then VAT does not apply to you. This is why VAT is justifiable.”

“Nigerians incur VAT in places like London, America, and Dubai – sometimes as high as 20 percent – yet they rarely react negatively. Why is it an issue in Nigeria? Across the globe, when consumers buy non-food items, they pay VAT. Nigerians capitulate to VAT in international destinations but resist it when applied locally.”