Federal Government is set to increase Value Added Tax(VAT) up to 50%, a move that will stoke up inflationary pressure in the economy.
This move is coming as a measure to raise funds to implement the new minimum wage about to be passed into law by the National Assembly.
They are also to increase income taxes(CIT) and Petroleum Profit Tax(PPT).
This was revealed yesterday, when the minister of Budget and National Planning, Udo Udoma and the Executive Chairman, Federal Inland Revenue Service(FIRS), Babatunde Fowler, appeared before the senate committee on Finance for an interactive session over 2019-2021 Medium term expenditure framework and fiscal strategy paper.
They hinted that the tax increases were inevitable, arguing that the new national minimum wage will further increase the size of the 2019 budget already in deficit, Fowler particularly told the Senator John Enoh (APC, Cross River Central) led Committee on Finance that the proposed payable VAT by Nigerians based on the increment would be between 35 per cent (6.75 per cent) and 50 per cent (7.25 per cent).