The Senate, having passed the sum of N30,000 new Minimum Wage bill into law, as the new wage, just as their counterparts have done in the House of Representatives.
Rumours have it that the new minimum wage structure is an avenue for the Federal Government to increase Value Added Tax by 50%. The decision was aimed at enabling the government to generate revenues that would guarantee the payment of the new minimum wage of N30,000.
The Minister of Budget and National Planning, Senator Udo Udoma in company of the Chairman of the Federal Inland Revenue Service, Mr Fowler Tunde disclosed this on Tuesday. The disclosure was made while appearing before the Senate Committee on Finance which is considering the passage of the 2019 – 2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
According to the government officials, the 50 percent increment in VAT would among other things, enable the Federal Government to fund the new national minimum wage.