Nigeria Employers’ Consultative Association (NECA), a key member of the organised private sector (OPS), has cautioned against the proposed increase in Value Added Tax (VAT) from 5 percent to 50 percent, saying its implementation would have far reaching implications for the fragile economy.
Asides weakening the purchasing power of distraught consumers, the proposed increase, NECA argues, will impact quite negatively on manufacturers and businesses, which are currently struggling for capacity utilisation.
The Federal Government is proposing to raise VAT to, among other things, enable it meet obligations to workers following the recent approval of increase in national minimum wage from N18,000 to N30,000 by the National Assembly.
According to NECA, increase in VAT is not and cannot be the only option opened to the government to fund the payment of the approved new minimum wage.
JOSHUA BASSEY
