We may be forced to increase Tax to pay new Minimum Wage, Budget Minister tells Senate

The approval of the new minimum wage by both chambers of the National Assembly might have stirred a new controversy as the possibility of increase in Value Added Tax (VAT) looms.

The Senate on Tuesday had approved the N30,000 new minimum wage but the Minister of Budget and National Planning, Senator Udo Udoma, while appearing before the Senate Committee on Finance noted that the Federal Government might be forced to consider an upward review of the Value Added Tax to garner enough fund to finance the approved new minimum wage.

Read also: Senate approves N30,000 new minimum wage

Udoma who complained about the current N18,000 minimum wage 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 said.

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