Recession: Atiku Wants Buhari To Tax Wealthy Nigerians To Pay Poor Households Monthly

The co-founder of Intels Nigeria, Atiku Abubakar, has suggested that President Muhammadu Buhari create a Poverty Alleviation Fund in the wake of Nigeria slipping into recession. Abubakar said Buhari should tax the upper class Nigerians or wealthy households to fund the alleviation programme.

The former presidential candidate said Buhari must take action that protect the poor and vulnerable against the recession. According to Abubakar, wealthy Nigerians should be the source of income for the poor households. He said the President doesn't have to borrow more, but tax the ultra wealthy Nigerians.

How Atiku Expect Buhari To Extract Funds From Wealthy Nigerians

While making his suggestion through his Twitter handle, Abubakar said tax should be placed on luxury purchases made by the upper class households in Nigeria. He said 15% tax should be placed on business and first class tickets sold to and from Nigeria.

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Among his suggested items also included luxury cars, jewelleries and jets imported and sold in Nigeria. Also, Abubakar said designer products and luxury goods should also be taxed. He also suggested that 1% poverty alleviation tax be placed on profit of oil companies and airlines operating in Nigeria.

"A practical approach to this is to place a 15% tax on all Business and First Class tickets sold to and from Nigeria, on all luxury car imports and sales, on all private jets imports and service charges, on all jewellery imports and sales,

"on all designer products imported, produced or sold in Nigeria, and on all other luxury goods either manufactured, or imported into Nigeria, with the exception of goods made for export.

"The proceeds of this tax should be exclusively dedicated to a Poverty Eradication Fund, which must be managed in the same manner as the Tertiary Education Trust Fund, or the Ecological Fund.

"I further propose that a 1% poverty alleviation tax should be legislated by the National Assembly on the profits of every International Oil Company operating in Nigeria, and international airlines doing business in Nigeria, which should also go towards the proposed Poverty Eradication Fund." Abubakar wrote on his Twitter handle.

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Atiku Proposes Monthly Payment To Poor And Vulnerable Households

Abubakar said cost of luxury products shouldn't be left stable while Buhari administration will increase cost of goods and services that affect the poor. He said such action will be unfair, so "We must flip this, and flip it immediately."

And part of his suggestion to protect the poor and vulnerable is to make monthly payments into their account from the tax deduction which is meant to form the Poverty Alleviation Fund. He opined that NGN5000 should be paid as monthly income to the poor families in order to reduce their financial burden.

"Additionally, we have to stimulate the economy, by investing in human development, and increasing the purchasing power of the most vulnerable of our population. Only a well developed populace can generate enough economic activity for the nation to exit this recession.

"We must invest in those most likely to be impacted by the effects of the recession, the poorest of the poor. As well as stimulating the economy, this also ensures that they do not slip further into extreme poverty.

"For example, a stimulus package, in the form of monthly cash transfers of ₦5000 to be made to every bank account holder, verified by a Bank Verification Number, whose combined total deposit in the year 2019 was lower than the annual minimum wage."