VAT increase will worsen economic situation–Gov. Umahi | Nairalaw

Ebonyi State Governor David Umahi on Wednesday said the plan by
the federal government to lift Value Added Tax( VAT ) from 5% to
35% to pay salaries will not solve any problem but rather worsen
the situation.

According to him, the plan will make things more difficult for
Nigerians as it will lead to astronomical increment of goods and
services in the country.

He described the alleged plan as digging a hole to fill a hole
and therefore called on Organised Labour to sit down with
government to consider the plan.

Umahi spoke in his office at government house Abakaliki while
addressing the staff of his office celebrating his re-election
victory.

He noted that with the proposed plan by the federal government,
anyone going to buy something will pay 30% VAT than it used to
be.

“I saw in a paper where federal government is considering
lifting VAT to 35% to pay salaries.

“It is all about digging a hole to fill a hole because we have
not come to point of realisation or honesty about how to solve our
problems and it is important.

“Federal government is borrowing money. States have been banned
from borrowing money.

“And so, if VAT is lifted from 5% to 35% which means that any of
us that is going to buy anything is going to pay 30% than what we
have been buying. It is important that labour sits down with
government.

“There is no fraud that goes on in civil service that is not
being orchestrated by civil servants and if we can plug down the
stealing or cut down the cost of projects, we should be able to
have enough to cater for civil servants and non-civil servants.

“We are in for deeper problems all over the nations we all sit
down and look at the problems and how to solve it.

“No Governor will make magic, no President will make magic. If
they give us N2bn and the wage bill is N2bn, you can’t make any
magic. You pay only wage bill and then go to sleep.

“No amount of money paid to civil servants can be enough, it is
only the one they make themselves that will assist them.

“If you pay somebody in grade level may be 10 N50, 000 by the
minimum wage and he goes to hospital, private hospital which bills
high because they will pay VAT on the drugs you will pay more in
drugs .

“If you go to buy exercise book for your children, you will pay
more. You will pay more in everything. So, by the end of the day,
civil servants may be crying we should go back to status quo and
therefore the increment may not be in the reason.”

He added: “I am not against the increment but when I was talking
about the minimum wage, I told you people that federal government
was considering doing something to enable them pay, that is raising
VAT which is going to tough for the country. All the building
materials will have 35% VAT, cement will come up with 35% VAT
meaning those who have not built houses will be struggling to
build”.

PDP Drags Justice Inyang to NJC Over Bauchi Guber
Result

The Peoples Democratic Party (PDP) has petitioned the National
judicial Council over the violation of the Constitution and
Electoral Act by Justice Ekwo Inyang of the Federal High Court by
sitting on a matter that ought to have been handled by an election
petition tribunal, as created by the provisions of our laws.

The party noted that in granting an exparte order stopping the
Independent National Electoral Commission (INEC) from concluding
the governorship election in Bauchi State, Justice Inyang violated
Section 87(11) of the Electoral Act, which states that no court has
the power or jurisdiction to stop any election pending the
determination of a suit.

In an affidavit sworn to by the PDP’s National Chairman, Prince
Uche Secondus, in Abuja, the party notes that issues of collation
of results and declaration of winner, is a post-election event and,
therefore, falls under the Electoral Act and Constitutional
provisions for the election petition tribunal.

The affidavit states, “Despite this clear provision of the law,
Justice Ekwo decided to hear the application of Alhaji Mohammed
Abubakar and his political party, the All Progressives Congress
(APC), within twenty four hours on 19th March, 2019 and issued an
order on INEC not to continue with the election until the case
before him is finally decided.

“That the collation of results is a post-election event and
under section 87(11) of the Electoral Act, no court has the power
or jurisdiction to stop any election pending the determination of a
suit.

“That an election includes voting, collation of results and the
declaration of results.

“That as a result of the order on the Independent National
Electoral Commission, the conclusion of the Bauchi State
Governorship election which was to take place on 19th March 2019
was stalled.

“That the order of Justice Ekwo was made contrary to the
provisions of the Constitution of Nigeria, 1999 as amended dealing
without fair hearing and also section 87(11) of the Electoral
Act.

“That the Chief Justice of Nigeria has constituted the various
Election Petition Tribunals in Nigeria to handle such cases and the
assumption of jurisdiction by Justice Inyang Ekwo is an affront to
the constitution and electoral wishes of the people of Tafawa
Balewa Local Government Area and Bauchi State”

The PDP insists that not only did Justice Inyang violate the
clear provisions of the Electoral Act, the motion granted is also
an affront to the electoral wishes of the people of Bauchi State
who have clearly chosen their next governor in voting for the PDP’s
candidate, Sen. Bala Mohammed.

The PDP urges the NJC to save our democracy by taking an urgent
step against the violations by Justice Inyang.

Signed:

Kola Ologbondiyan
National Publicity Secretary,
Director, Media & Publicity
PDP Presidential Campaign Organization