FIRS says there is no plan to increase VAT by 50%

According to Daily Post, the Head, Communication and Servicom Department, Wahab Gbadamosi made this known in a statement on Wednesday, March 20, 2019 in Abuja.

Gbadamosi said that “contrary to reports in the media, the FIRS Chairman called for a reduction in Companies Income Tax (CIT) rate for small businesses so as to improve compliance.

“Though he indicated that there should be an increase in VAT rate by the end of the year, he never for once suggested a 50 per cent hike of any percentage increase at all.

“Rather, he promised improved collection in CIT, Petroleum Profits Tax, PPT and VAT in 2019 relative to the collection performance of the Service in 2018.”

On Tuesday, March 19, 2019, it was reported that the Minister of Budget and National Planning, Udoma Udo Udoma, while addressing the Senate Committee on Finance said that the Federal Government may increase Value Added Tax (VAT) to fund the new minimum wage.

"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," he added.

The Senate passed the minimum wage bill into law on Tuesday, March 19, 2019.