By Kunle Adedoyin
Ashiwaju Bola Tinubu, the national leader of the ruling All Progressives Congress (APC), has advised the federal government not to increase value added tax (VAT).
The former Governor of Lagos State on Wednesday, at the colloquium held in commemoration of his 67th birthday, said such action could lead to hardship among Nigerians. Instead, the former financial analyst was advising the government to 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.
“Don’t reduce the people’s purchasing power,” he said.
Babatunde Fowler, Chairman of the Federal Inland Revenue Service (FIRS), alongside Senator Udo Udoma, the Minister of National Planning, had during a session with members of the Senate Finance Ccommittee 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 current VAT rate in the country is five percent VAT on the applicable products.