Economy
Ndume Faults VAT Increase, Advocates Property, Communications Tax
By Mathew Dadiya, Abuja
Senator Ali Ndume has called for enactment of a property and communications tax to shovel revenue for government rather than increasing the Value Added Tax (VAT).
The former senate leader appealed to the Federal Government not to add to the suffering of the poor citizens with the proposed increase on VAT from five percent to 7.
5 percent.Senator Ndume spoke on Thursday with State House correspondents after meeting behind closed door with Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
The visit to the Villa was the first after he contested for the position of Senate President in June against the Senate President, Ahmad Lawan, who was the adopted candidate of the ruling -All Progressives Congress, APC.
Ndume, who represents Borno South Senatorial District in the National Assembly, argued that the proposed VAT increase would affect the poor.
He also kicked against the proposed return of toll gates on the federal highways without putting the roads in good shape.
On the proposed return of toll gates, he said, “You see, the state of our infrastructure is of concern; there is virtually collapse in our infrastructure; if the purpose for which the toll gates will be placed will serve the objective of keeping the roads not only motorable but effective and safe, it is a welcome development.
“Like the Abuja-Kaduna road for example, where there is toll gate, you will be able to place security there and if you place these people there, you have to pay them and the resources is not readily available
“I am sure every Nigerian travelling for example, say from Lagos to Ibadan, if you say he is going to pay N100 at each point in four places, you should ensure that number one, the road is good; number two, he will be safe; he can drive without expecting anybody to come and close the road and kidnap or rob anybody.
“Then, it will make sense to me but for the toll gate to be placed just for the purpose of it, I don’t think that is what the government wants to do; Besides, I heard the minister say that they are bringing private partnership into it; and that is also good.”
Also commenting on the proposed VAT increment, Senator Ndume said,”I think that increase in VAT is going to have a spiral effect; and it is going to affect the poor more.
“It is true the government is not expanding the revenue base or the tax net that is why I am thinking that anybody that is using telephone here would want to just talk and pay for it of course, but right now, no one will say this is what he is paying for telephone.
“If the network provider says it is one minute remaining, you start looking for any recharge card but if you are taxed on that, you won’t say you won’t talk again because you are taxed.
“But if you add tax now, the effect will be on everybody and every commodity. Even transportation from one point to another will increase and who is going to pay or who is going to feel it more; it is the poor.
“So that is why I am saying that we should introduce Communications Service Tax and people will pay for it sometimes even not knowing and government will be able to generate more from that angle; you know the money the service providers are making out of communications.
“So, that is why I sponsored that Bill last time but it didn’t see the light of the day because of time and of course service providers opposed that.
“Let me add one thing. Yes, we have a government; the tax should be paid by those who can; who should or who can afford that tax. Like in Abuja, you see so much property; if you value them, property tax is not being paid and I am not paying too simply because nobody is paying; nobody asked me to pay.
“In Nigeria, for example, the resources is in the hands of few people; why not tax these few people instead of going to tax the poor man that is trying to survive.
“So, this is my position and I think this Communications Service Tax is part of it; ask those that can afford telephone, 60 million of them; why do you tax 200 million people? Tax the 60 million people that can afford it and you get what you want.”
Senator Ndume said that he was working on a bill to be presented to the senate known as,” Property Tax Bill”.
According to him, “I am going to do that; I am working on it; I am working on property tax bill. Not only that, I am working on another bill…maybe it will not see the light of the day; people are having what they can’t explain if they should be asked. The burden of proof should be on that person.
“If I have a mansion and my income as a senator is not commensurate with that, if you want to fight corruption, you put the burden on me to prove where I got that money.
“In Britain nowadays, it is called Unexplained Wealth Order(UWO), I am working that too; that if you own a car, you explain how you got it; because of that if you don’t know where to go with what you steal that doesn’t belong to you, you don’t even start.”
On why he was at the State House, he said, ” I am here to see the Vice President. I come from time to time; I have a relationship, very personal with the Vice President; just like the President too.
“More especially, I come to brief him from time to time on the humanitarian crisis that we are facing because the Vice President is personally passionate about it. You know what he did for us; he has an orphanage that is running very effectively in my area; accommodating over 2000 orphans.
“So, I normally come to discuss with him; he is always very curious about what is going on; so I came to adequately brief him; and of course, you know, in the course of that kind of discussion, you discuss other things which are private and personal.”
Economy
Minister Says Upgrading MAN to Varsity will Unlock Maritime Opportunities
Mr Adegboyega Oyetola, the Minister of Marine and Blue Economy says upgrading the Maritime Academy of Nigeria (MAN), Oron to a university, will unlock opportunities in the maritime economy.
Oyetola made the expression at the 2024 MAN cadets graduation ceremony in Oron, Akwa Ibom on Saturday.
Represented by Mr Babatunde Bombata, the Director, Maritime Safety and Security, the minister said the Federal Government was working assiduously to unlock opportunities within the marine and blue economy.
He said that the ministry was already collaborating with the Ministry of Education and the Nigerian Universities Commission to ensure MAN’s seamless transition to a university.
“It is our hope that this upgrade will unlock new opportunities for advanced learning, cutting edge research and innovation within the marine and blue economy fields,” he said.
Oyetola urged the graduating cadets to be innovative, resourceful and forward looking in their future endeavours.
“The maritime and blue economy sectors are filled with opportunities, so your contributions to the sector will be instrumental in ensuring a brighter future.
“The government is committed to fostering excellence and innovation in these fields, and we eagerly anticipate the positive impact you will make in your careers,” he said.
He further said that the Federal Government was working on developing a national policy on marine and blue economy.
“This policy will serve as a strategic framework to drive economic diversification, attract investments, create jobs and youth empowerment.
In his remarks, Gov. Umo Eno of Akwa Ibom, said the state government would continue to collaborate with the academy to develop the maritime sector.
Represented by the Commissioner for Internal Security and Waterways, Gen. Koko Essien, (Rtd), Eno urged the graduating cadets to utilise their training in developing the maritime sector.
“I am hopeful that you will utilise the training you have acquired here to further your career as seafarers and in the development of our blue economy,” he said.
Eno commended the Acting Rector, Dr Kevin Okonna and his management team for their commitment towards repositioning the academy for greater results.
Earlier, Okonna said that graduates of the institution had contributed immensely to the growth of Nigeria’s maritime and blue economy.
“Today, we have an opportunity to celebrate a new set of well-trained personnel to the maritime and allied industries.
“We pride ourselves as the pioneer maritime training institution, this is because of the institution’s contributions to national development,” he said.
The acting rector urged the graduating cadets to made effective use of the knowledge gained during their training to make meaningful impact on the growth of the maritime sector.
Report says that awards were given to graduating cadets who distinguished themselves in character and learning. (NAN)
Economy
Investors Gain N183bn on NGX
The Nigerian Exchange Ltd. (NGX) continued its bullish trend on Wednesday, gaining N183 billion.
Accordingly, the market capitalisation, which opened at N59.532 trillion, gained N184 billion or 0.31 per cent to close at N59.715 trillion.
The All-Share Index also added 0.31 per cent or 303 points, to settle at 98,509.
68, against 98,206. 97 recorded on Tuesday.Consequently, the Year-To-Date (YTD) return increased to 31.
74 per cent.Gains in Aradel Holdings, Zenith Bank, United Bank For Africa(UBA), Oando Plc, Nigerian Breweries among other advanced equities drove the market performance up.
Market breadth closed positive with 34 gainers and 17 losers.
On the gainers’ chart, Africa Prudential, Conoil and RT Briscoe led by 10 per cent each to close at N14.30, N352 and N2.42 per share, respectively.
Golden Guinea Breweries followed by 9.95 per cent to close at N7.18, while NEM Insurance rose by 9.74 per cent to close at N10.70 per share.
On the other hand, Julius Berger led the losers’ chart by 10 per cent to close at N155.25, Secure Electronic Technology Plc trailed by 9.52 per cent to close at 57k per share.
Multiverse lost 7.63 per cent to close at N5.45, Haldane McCall dropped 6.07 per cent to close at N4.95 and Honeywell Flour shed 5.62 per cent to close at N4.70 per share.
Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 49.44 per cent.
A total of 320.10 million shares valued at N6.48 billion were exchanged in 7,943 deals, compared with 939.41 million shares valued at N12.81billion traded in 9,098 deals posted in the previous session.
Meanwhile, ETranzact led the activity chart in volume with 70.27 million shares, while Aradel led in value of deals worth N1.22 billion.(NAN)
Economy
Yuan Weakens to 7.1870 Against Dollar
The central parity rate of the Chinese currency renminbi, or the Yuan, weakened 22 pips to 7.1870 against the dollar on Monday.This is according to the China Foreign Exchange Trade System.In China’s spot foreign exchange market, the Yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.
The central parity rate of the Yuan against the dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. (Xinhua/NAN)