The National leader of the ruling All Progressives Congress (APC), Asiwaju Bola Ahmed Tinubu on Thursday counselled the federal government against increasing value added tax (VAT).
Tinubu who spoke at the colloquium held to mark his 67th birthday, said such action could lead to hardship among Nigerians.
He, instead advised the government to widen the country’s tax net.
Tinubu said, “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.”
“Don’t reduce the people’s purchasing power.”
It will be recalled that earlier this year, Udo Udoma, minister of budget and national planning, had said the government was looking at increasing VAT to shore up its revenue following the approval of the N30,000 minimum wage by the national assembly.
The world bank has also consistently said that Nigeria’s VAT rate remains one of the lowest in the world and urged the government to consider increasing the rate.
Nigeria currently charges five percent VAT on all products.