Bola Tinubu, a national leader of the ruling All Progressives Congress (APC), on Thursday asked the Federal Government not to increase value added tax (VAT).
“I must say this to Prof Osinbajo and his team, don’t increase VAT but increase tax net to accommodate those who are not yet paying,” said Tinubu.
“Don’t reduce the people’s purchasing power.”
The former Governor of Lagos spoke at the colloquium held in commemoration of his 67th birthday.
It will be recalled that Babatunde Fowler, chairman of the Federal Inland Revenue Service (FIRS), Udo Udoma, minister of budget and national planning, had said the government was considering raising VAT to increase its revenue and also cover for the payment of N30,000 minimum wage recently approved by the national assembly.
Fowler said the proposed payable VAT by Nigerians based on the increment would be between 35 per cent (6.75%) and 50 per cent (7.25%).
The government is currently charging five percent VAT on all products in the country.