Bola Tinubu has urged the Federal Government not to go ahead with its plan to increase VAT.
Bola Tinubu
The National Leader of the All Progressives Congress, Bola Tinubu, on Thursday urged the Federal Government not to increase the Value Added Tax, Punch has reported.
According to him, an increase in VAT will reduce the spending capacity of the people and might increase hardship.
He urged the Federal Government to rather consider increasing the tax net.
He spoke on Thursday during the 11th Bola Tinubu Colloquium at the International Conference Centre, Abuja.
It may be recalled that, sequel to the approval of N30,000 as minimum wage by the National Assembly, the Minister of Budget and National Planning, Senator Udo Udoma; and the Chairman of the Federal Inland Revenue Service, Mr. Babatunde Fowler, had said the Federal Government was considering an upward review of the Value Added Tax by 50 per cent.
Udoma and Fowler who stated this on Tuesday when they appeared before the Senate Committee on Finance, said the increment was to, among others, enable the Federal Government to fund the new national minimum wage.
Fowler said the proposed payable VAT by Nigerians based on the increment would actually be between 35 per cent (6.75%) and 50 per cent (7.25%).
The government is currently charging five per cent VAT on all products in the country.