To pay the new minimum wage, FG may increase Value Added Tax – Budget minister

Senator Udo Udoma, the Minister of Budget and National Planning appeared before the Senate Committee on Finance today and hinted that the Federal Government was considering, among others, an upward review of the Value 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 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 to ensure that capital projects and other sectors of the economy are adequately funded.