On Wednesday, President, United Labour Congress (ULC), Joe Ajaero, said that any increase in the Value Added Tax (VAT) that would be used to pay the N30,000 new minimum wage would not be accepted.
Ajaero spoke to the News Agency of Nigeria (NAN) in Lagos in reaction to Federal Government’s indication that it might increase VAT to enable it pay the minimum wage.
Sen. Udo Udoma, Minister of Budget and National Planning, had at a meeting in Abuja said that VAT could be raised to 50 per cent before the end of 2019 to enable the government fund the new wage.
“There was no condition attached during minimum wage negotiation. If there will be increase in VAT, all stakeholders will look at it and take a decision,’’ the labour leader said.