Paying minimum wage’ll justify VAT increase, Senate tells govs

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Paying minimum wage’ll justify VAT increase, Senate tells govs
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The Senate has said governors have no reason not to pay civil servants the N30, 000 new minimum wage. The red chamber said Nigerians were being made to pay additional 2.

5 per cent Value Added Tax to enable state governments to meet their wage obligations to their workers.

“Any governor who wants to play with such money is doing so at his own peril because there is the burden of paying salary.“It is only the Federal Government that has enough money to pay its workers at the moment . Adeola said, “The exemptions in the Finance Act has protected the common man enough as far as VAT increment is concerned.

He said the National Assembly would work with the executive arm to ensure that manufacturers and service providers didn’t take advantage of innocent citizens as a result of VAT increment.He said, “Government will not allow any firm to take advantage of the masses in the implementation of VAT increase.

“As much as we are deregulating, we should embrace the pay-as-you-go with everybody having a prepaid metre.”Adeola said the country would continue to pay subsidy on imported petroleum products until the refineries were fully functional and new ones built.“I can imagine if the money used for fuel subsidy can be withdrawn and used in implementing the budget.“They need to be functioning before we can consider removing fuel subsidy.

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