Federal government may increase VAT to fund minimum wage

Senator Udoma Udo Udoma, Nigeria’s Minister of Budget and National Planning, has given a sign that the administration may need to raise Value Added Tax (VAT) to subsidize the new national minimum wage.

He expressed this on Tuesday when he showed up before the Senate Committee on Finance at the consultation to consider on the new national minimum wage of N30,000 endorsed by the Senate.

The Senate had endorsed the new figure at its whole on Tuesday.

Talking before a board driven by Senator John Owan Enoh, Udoma noticed that the Technical Advisory Committee on the minimum wage would present its answer to President Muhammadu Buhari amid the week.

“The present minimum wage of N18,000 is actually excessively low. It is troublesome for laborers to survive with that sum. The President upheld a survey yet it is vital that as we are turning it, around, we ought to able to fund it.

It is due to this reason that we would come you (Senate), on the grounds that there might be the need to roll out certain improvements, particularly the VAT, so as to finance the minimum wage once it is reported,” he said.

Joshua Samuel
About Joshua Samuel 125 Articles
Joshua Samuel is a pro blogger who finds delight and fulfillment in telling stories in different formats with the aid of technology and social media.

He is the chief editor of TheElitePost Nigeria.

you can contact him on Joesam@theelitepost.com or give him a call on +2348141396296

2 Comments

  1. It’s a very good improvement by the Federal government but it’s not good enough. The Nigerian labourers deserve more.

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  1. Federal Government Denies Rumor of Increasing VAT By 50% – Get247News Nigeria

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