FG Considering Hiking VAT To Pay N30,000 Minimum Wage – Budget Minister
Minister of Budget and National Planning, Senator Udo Udoma, has hinted that the Federal Government might hike the Value Added Tax, VAT to be able to pay the newly approved N30,000 minimum wage for workers.
Udoma said this today when he appeared before the Senate Committee on Finance.
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 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.