Senator Udoma Udo Udoma, Nigeria’s Minister of Budget and National Planning, has given indication that the government may need to increase Value Added Tax (VAT) to fund the new national minimum wage. In his words " The current minimum wage of N18,000 is really too low. It is difficult for workers to manage on that amount. The President supported a review but it is important that as we are reversing it, we should be able to fund it. It is in the light of this that we would be coming to you (Senate), because there may be the need to make some changes, especially the VAT, in order to fund the minimum wage once it is announced.”

What's a VAT?
VAT is a consumption tax levied on products at every point of sale where value has been added, starting from raw materials and going all the way to final retail purchase. This means the consumer bears the final burden. Immediately VAT is increased, the multipler effect is that the price of goods and services will also jump up and in a Nigeria Economy where little change can provoke alarming inflation, we might be in for another tough time.

What's the essence of New minimum wage if the workers have to pay more on goods and services? This is a pure case of robbing Peter to pay peter. This simply means the added salary has no value because the money has been taken back through tax. We hope the NLC and Trade Union are monitoring the situation, this not the right means to fund the new minimum wage, it's a pure case of "ROBBING PETER TO PAY PETER" so to say.

Bubu-hari Is A Great Disaster

Where should the money come from Mr. Critic?

GavelSlam:
Where should the money come from Mr. Critic?

Maybe they (critics) were expecting buhari to do money rituals to pay workers!

GavelSlam:
Where should the money come from Mr. Critic?

The money can come from removal of feeding allowance of the executive, all other useless allowances, useless constituency funds, reducing by 50% the pay of all political office holders, having only the needed number of political appointees like PAs and SAs etc. It must not come from us, to be paid back to us after pilfering with it. What benefits will it have on us again? Only the government will keep benefiting from it.
Mr no critics.

Mystick:

The money can come from removal of feeding allowance of the executive, all other useless allowances, useless constituency funds, reducing by 50% the pay of all political office holders, having only the needed number of political appointees like PAs and SAs etc.
Mr no critics.

Baby analyst.

Do you even know the sheer size of the workforce?


All these kids sef.

Mystick:

The money can come from removal of feeding allowance of the executive, all other useless allowances, useless constituency funds, reducing by 50% the pay of all political office holders, having only the needed number of political appointees like PAs and SAs etc.
Mr no critics.

Baby analyst.

Do you even know the sheer size of the workforce?

GavelSlam:


Baby analyst.

Do you even know the sheer size of the workforce?

No I don't know. Our NBS oga, you can tell us. I do know very well, there are a lot of waste of our resources going on with the extravagant way all governments in this country have been running their affairs coupled with the mindless policies they keep throwing up on us that have fueled inflation, the most reason workers are asking for pay rise. Now increasing VAT will surely raise inflation level making the pay rise useless.
So Mr No critics and Adult analyst, how will that improve worker's welfare?

Mystick:

No I don't know. Our NBS oga, you can tell us. I do know very well, there are a lot of waste of our resources going on with the extravagant way all governments in this country have been running their affairs coupled with the mindless policies they keep throwing up on us that have fueled inflation, the most reason workers are asking for pay rise. Now increasing VAT will surely raise inflation level making the pay rise useless.
So Mr No critics and Adult analyst, how will that improve worker's welfare?

You are going round in circles without a solution in sight.

Wages run into trillions whilst the so-called benefits of political office holders is in billions.

Without tariffs and taxes where would the money come from?

Stop being sentimental.

if the excuse for increasing VAT is to pay minimum wage ,then its devils gift, price of commodities in the market will increase that means the N30,000 will not be enough to sustain families.
Importers & sellers of commodities are on the safer side, because how they buy will be how they will sell. Salary earners are always on the receiving side.

Robbing peter to pay Paul.

GavelSlam:


You are going round in circles without a solution win sight.

Wages run into trillions whilst the so-called benefits of political office holders is in billions.

Without tariffs and taxes where would the money come from?

Stop being sentimental.

Actually you need to stop lieing.

The wages if increased to 30k will gulp 250 billion, with the present wage it's about 150 billion Naira yearly. And if the President can't find a way to in rease revenue of a country without recourse to taxing the citizen, then he shouldn't be there in the first place.

Let us not even forget that VAT only goes to Federal Government. So if the federal government can't pay the minimum wage without increasing VAT, how do they expect states to pay.


Nigeria has come full circle of failure that even the citizens believe that the only way government can raise more money is by tasking them or taking loans.

Take a look at other nations which are fast developing and you will say that the government always go on an aggressive investment in fields that will attract FDI, make their country business friendly for their citizens and make policies and laws that will increase Citizen's productivity and create a more progressive middle class..


Americans are pushing Task reforms to task the rich more and reduce the poor task obligations. While the government is reducing every body's task both rich and poor, so as to generate more employment, make people have more money to spend and therefore rejuvanate the economy.

Dubai- invest In tourism so as to get more people to come in to the country and spend. Create tax holidays for businesses coming to invest in the country and create employment.

India--investing in medical tourism and technology so as to provide quality medical services like the developed country for cheaper price so poor countries can troop in and create wealth for them.

China-- cheap productivity. So countries can invest in the country to create cheap products and sell to the world for maximum profit. And they topped it off by making their currency less valuable because it will benefit them asn export driven economy.


Nigeria--just get the citizens to pay..

Tittos:



Actually you need to stop lieing.

The wages if increased to 30k will gulp 250 billion, with the present wage it's about 150 billion Naira yearly. And if the President can't find a way to in rease revenue of a country without recourse to taxing the citizen, then he shouldn't be there in the first place.

Let us not even forget that VAT only goes to Federal Government. So if the federal government can't pay the minimum wage without increasing VAT, how do they expect states to pay.


Nigeria has come full circle of failure that even the citizens believe that the only way government can raise more money is by tasking them or taking loans.

Take a look at other nations which are fast developing and you will say that the government always go on an aggressive investment in fields that will attract FDI, make their country business friendly for their citizens and make policies and laws that will increase Citizen's productivity and create a more progressive middle class..


Americans are pushing Task reforms to task the rich more and reduce the poor task obligations. While the government is reducing every body's task both rich and poor, so as to generate more employment, make people have more money to spend and therefore rejuvanate the economy.

Dubai- invest In tourism so as to get more people to come in to the country and spend. Create tax holidays for businesses coming to invest in the country and create employment.

India--investing in medical tourism and technology so as to provide quality medical services like the developed country for cheaper price so poor countries can troop in and create wealth for them.

China-- cheap productivity. So countries can invest in the country to create cheap products and sell to the world for maximum profit. And they topped it off by making their currency less valuable because it will benefit them asn export driven economy.


Nigeria--just get the citizens to pay..

Small pikin.

Analysis of official data published by the National Bureau of Statistics (NBS) revealed that in 2016, the 30 states reviewed, minus Lagos, generated N515.61 billion internal revenue which is one-third of the N1.479 trillion they spend on workers remuneration annually

https://allafrica.com/stories/201710300038.html

What do I say I say NEXT LEVEL. We are all in this together