To pay minimum wage, FG plans to increase VAT

To pay minimum wage, FG plans to increase VAT

Senator Udo Udoma, the minister of Budget and National Planning, has hinted that the Federal Government was considering, among others, an upward revie

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Senator Udo Udoma, the minister of Budget and National Planning, has hinted that the Federal Government was considering, among others, an upward review of the Value Added Tax, VAT, to enable it to fund the new national minimum wage. Udoma said, “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 revising 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 also said efforts were on, too, to ensure that capital projects and other sectors of the economy are adequately funded.