Nigeria Employers Consultative Association (NECA) has cautioned the presidency from going ahead with its plan to raise the Value-Added-Tax (VAT).
Federal Executive Council at its Wednesday meeting at the Presidential Villa, Abuja, proposed the increase of the VAT to 7.5 per cent from the existing five percent.
The Association Director General, Timothy Olawale in a statement, warns that the proposal if implemented, will wipe out the gains of the new national minimum wage.
Olawale explains that 7.5 per cent VAT will raise prices of goods and service, and reduces the purchasing power of Nigerians.
Finance Minister, Zainab Ahmed, who announced the proposal after the FEC meeting says her ministry will still engage in wide consultations before sending it to the National Assembly for consideration and approval.