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FG Considering Upward Review of VAT to Fund National Minimum Wage

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  • FG Considering Upward Review of VAT to Fund National Minimum Wage

The federal government has made known its intention to upwardly review the Value Added Tax (VAT) as a means of funding the national minimum wage.

The Budget and National Planning Minister, Senator Udo Udoma, made this disclosure on Tuesday while appearing before the Senate Committee on Finance headed by Senator John Enoh.

He said: “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.”

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 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.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.