The Federal Inland Revenue Service (FIRS) has refuted reports a of planned increment of Value Added Tax (VAT) by 50 percent to generate funds for the newly proposed minimum wage.
The Minister of Budget and National Planning, Sen. Udo Udoma and Dr Babatunde Fowler, FIRS Chairman, had appeared before Senate Committee on Finance at the 2019-2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper ((PSP) interactive meeting on Tuesday.
FIRS explained that at the meeting, Fowler had called for an increase in the number of Nigerians and companies paying VAT and not a 50 percent increase in VAT rate as reported.
It said, 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.