FG may increase VAT to pay new minimum wage – Budget minister
Minister of Budget and National Planning, Senator Udo Udoma, on Tuesday appeared before the Senate Committee on Finance and hinted that the Federal Government was considering among others, an upward review of the Valued Added Tax, to enable it to fund the new national minimum wage.
Udoma also told the panel headed by Senator John Owan-Enoh, that the Technical Advisory Committee on the minimum wage, will submit its report to President Muhammadu Buhari this week.
He 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 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 also said efforts were on the way too to ensure that capital projects and other sectors of the economy are adequately funded.