Tinubu Cautions FG Against Increasing VAT

Tinubu Warns FG Not To Increase VAT
Former Governor of Lagos State, Bola Ahmed Tinubu

National leader of the ruling All Progressives Congress (APC), Bola Tinubu, has advised the federal government to jettison any plan of increasing value added tax (VAT).

He was speaking at the colloquium held in commemoration of his 67th birthday in Abuja on Thursday, saying such action could lead to hardship among Nigerians.

He admonished the government to instead widen the tax net.

“I must say this to Prof Osinbajo and his team, don’t increase VAT but increase tax net to accommodate those who are not yet paying,” he said.

“Don’t reduce the people’s purchasing power.”

During a session with members of the senate finance committee, Babatunde Fowler, chairman of the Federal Inland Revenue Service (FIRS), Udo Udoma, minister of budget and national planning, had said the government was considering raising VAT to shore up its revenue and to also meet up with the N30,000 minimum wage approved by the national assembly.

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 percent VAT on all products in the country.

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