The Minister of Budget and National Planning, Senator Udo Udoma, has disclosed that the federal government is considering an upward review of the Value Added Tax, VAT, as a means of funding the national minimum wage.
The minister made the disclosure on Tuesday while appearing before the Senate Committee on Finance headed by Senator John Enoh.
According to Mr Udoma, VAT is one of the country’s low-hanging fruit that could be leveraged upon to fund the new minimum wage.
“We would be coming soon to the 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.
The minister further revealed that the Technical Advisory Committee on the minimum wage will this week submit its report to President Muhammadu Buhari.
According to him, “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.”