The Nigerian Labour Congress (NLC) has rejected the increase in VAT from 5 percent to 7.2 percent announced by the Federal Government on Wednesday during the Federal Executive Council Meeting.
Reacting to the vexed issue, General Secretary of the NLC, Okechukwu Ugboaja, said: “We reject the increase as it clearly seeks to erode whatever purchasing power the minimum wage may bring . We see it as a move not well thought through with the welfare of Nigeria wage earners in mind.
“Its impact on Nigeria manufacturers and job creation and retention will be nightmarish. It is clearly insensitive to the plight of the ordinary Nigerian,” he said.
He added that what the government needed to do was to widen the tax net and get people to pay tax and not to over-tax those that are in the net as of now.
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