FG plans upward review of VAT to fund minimum wage

VAT

The Federal Government says it is contemplating to review upward, the Value Added Tax (VAT) with a view to comfortably fund the new national minimum wage.

Senator Udo Udoma, the Budget and National Planning Minister, gave this hint on Tuesday when he appeared before the Senate Committee on Finance headed by Senator John Enoh.
“We would be coming soon to the Senate because there may be the need to make some changes especially the VAT, in order to fund the minimum wage once it is announced,” Udoma said.
The minister further revealed that the Technical Advisory Committee on the minimum wage will this week submit its report to President Muhammadu Buhari.
According to him, the current minimum wage of N18,000 is too low.
“It is difficult for workers to manage on that amount.
“The president supported a review but it is important that as we are reversing it, we should be able to fund it,” he said.
The National Assembly has passed a new national minimum wage of N30,000 now awaiting President Muhammadu Buhari’s accent.
By our correspondent

 

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