7.2% VAT will render new minimum wage useless – NECA

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7.2% VAT will render new minimum wage useless – NECA
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The Nigeria Employers’ Consultative Association has said the implementation of the 7.

2 per cent Value Added Tax approved by the Federal Executive Council will make nonsense of the recent increase in minimum wage.

NECA, in a statement on Thursday, cautioned the Federal Government against the timing of the announced increase of VAT from five per cent to 7.2 per cent, which was approved by the Federal Executive Council on Wednesday. He said since the purchasing power of the citizens would be reduced, sales of goods and services would reduce and inventories for business would be high, adding that this could lead to closure of businesses that ought to be supported by government in reducing the alarming unemployment rate in the country.

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