- Prof. Kabiru Dandago urged the Federal Government to impose higher taxes on wealthy Nigerians instead of increasing Value Added Tax (VAT)
- He proposed taxes on luxury goods and transactions over N10 million, aiming to double revenue while addressing wealth inequality
Prof. Kabiru Dandago, a renowned accounting expert from Bayero University Kano, has urged the Federal Government to raise value-added tax (VAT) instead of targeting wealthy Nigerians with higher taxes.
Speaking on Trust TV’s Politics Today on Sunday, Dandago proposed introducing taxes on luxury goods, properties, and high-value transactions.
He argued that these measures could double the revenue generated from VAT while reducing the wealth gap.
“I don’t support VAT and have even suggested scrapping it,” Dandago said. “Instead, the government should explore transactional, luxury asset, and property tax. These can generate twice the revenue of VAT.”
He emphasized that taxing luxury transactions would ensure the rich bear more responsibility. For instance, taxes could apply to transactions exceeding a threshold, such as spending over N10 million on luxury activities.
Dandago also voiced concerns over the proposed family income tax in the recent reform bills, warning it might lead to taxing inherited wealth or gifts. “The term ‘family income’ in the bill hints at taxing inheritance or capital transfers,” he explained.
On the political response, a policy strategist, Baba Yusuf criticized northern governors opposing the bill, suggesting their objections may serve personal interests rather than public welfare.
He noted their silence during the fuel subsidy removal, which increased federal allocations, as evidence of their inconsistency.
Entrepreneur and politician Nurudeen HammanYero called for the suspension of the tax bills.
He argued that the government should first allow Nigerians to benefit from fuel subsidy removal and forex stabilization before introducing additional taxes.
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