FG to increase VAT to fund new minimum wage
Senator Udoma Udo Udoma, Nigeria’s Minister of Budget and National Planning, has given indication that the government may need to increase Value Added Tax (VAT) to fund the new national minimum wage.
He stated this on Tuesday when he appeared before the Senate Committee on Finance at the hearing to deliberate on the new national minimum wage of N30,000 approved by the Senate.
The Senate had approved the new figure at its plenary on Tuesday.
Speaking before a panel led by Senator John Owan Enoh, Udoma noted that the Technical Advisory Committee on the minimum wage would submit its report to President Muhammadu Buhari during the week.
“The current minimum wage of N18,000 is really 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. It is in the light of this that we would be coming to you (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,” he said.