The Presidency is to increase upward the Value-Added-Tax to generate more funds, to implement the new national minimum wage.
Budget and National Planning Minister Udo Udoma, made this known while appearing before the Senate Committee on Finance at the National Assembly in Abuja.
He told the Committee that a bill on the new VAT rate will soon be sent to the National Assembly for consideration and approval, immediately the new wage is announced.
The Minister admits that the existing N18,000 national monthly minimum wage is too low, adding that President Buhari also supports the upward review of the wage.
Chairman of Federal Inland Revenue Service (FIRS), Babatunde Fowler, told the Committee that the VAT rate will go up from the current five per cent to between 6.75 per cent and 7.25 per cent.
Fowler explains that the proposed VAT rate increase is one of the areas that FIRS is targeting to meet its 2019 revenue projection of N8 trillion.