Sequel to reports making the rounds that the federal government is planning a significant increase in Value Added Tax (VAT) in the country, a Chartered Accountant and a retired Permanent Secretary in the Ministry of Finance in Plateau State, Isaac Wadak, said any increase in VAT will erode the gains that will be made from 30,000 minimum wage rise.
He said instead of increasing the VAT, government should work to ensure they get more people to pay VAT, and leave the current rate as it is.
Wadak who was a Senatorial aspirant in the race for Plateau Central Senatorial seat disclosed this in an exclusive interview with DAILYPOST in Jos, the Plateau State Capital.
He said, “The argument that VAT increase will not affect VAT exempted items such as basic food items, medical and pharmaceutical products, books and educational materials among others, doesn’t hold water.
“For instance, a woman who sells basic food items will definitely increase her prices if the price of her body cream, toiletries among others increases as a result of VAT increase.
According to him, “The arguments that other countries’ VAT rate is higher than Nigeria does not also hold water. Those countries whose VAT rates are higher than Nigeria have low cost of production.
The PDP chieftain maintained that, “Nigeria is one of the countries in the world that has very high cost of production due to huge infrastructural deficits.
On the way forward, Wadak said, “Government should ensure it gets more people to pay VAT.
“Leave the VAT rate as it is now; because any increase will erode the gains made from 30,000 minimum wage increase”, he stressed.
