Economy

VAT May Increase In Order To Fund New Minimum Wage- Udo Udoma

The Minister of Budget and National Planning, Udoma Udo Udoma, on Tuesday announced plans by the Federal Government to increase Value Added Tax (VAT) to fund the new N30,000 minimum wage.

He disclosed this at the plenary when the Senate approved the N30,000 minimum wage which will increase the minimum wage from N18,000.

Speaking  before a panel led by Senator John Owan Enoh Udoma said many changes will have to be made to afford the new wage structure.

“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 addded that efforts were on, too, to ensure that capital projects and other sectors of the economy are adequately funded.
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