* FIRS refutes report
Governor Dave Umahi of Ebonyi State has faulted the Federal government‘s alleged plan to increase the Value Added Tax (VAT) from 5 per cent to 35 per cent.
Umahi, who made the declaration on Wednesday while addressing staff of his office celebrating his re-election for a second term, described the FG’s plan as ‘digging a hole to fill a hole’.
Umahi noted that implementing the VAT increment to pay workers the new N30, 000 minimum wage would make things more difficult for the people.
“I call on the organised labour to dialogue with the government on such plans as people will make 30 per cent payment more on goods than what it used to be.
“We have not come to a point of realization or honesty on how to solve our problems and this is important.
“The Federal Government is borrowing money while states have been banned from borrowing.
“When VAT is increased from 5 per cent to 35 per cent, it means that anyone who wants to buy something will pay 30 per cent more than what he used to buy,” he said.
The governor noted that there was no fraud perpetuated in the civil service that was not to the consent of civil servants.
“We can plug the stealing or cut the cost of projects to have enough to cater for civil and non-civil servants.
“No governor or president will perform magic and if they give us N2 billion and the wage bill is N2 billion, you pay only wage bill and go to sleep.
“No amount of money paid to civil servants can be enough as it is only the one they make themselves that will assist them.
“When someone on grade level 10 is paid N50, 000 by the minimum wage, he goes to the hospital with high bills because VAT will be paid on the drugs.
“When someone goes to buy exercise books for his children, he will pay more and by the end, civil servants may be crying and wishing for a return to status quo,” he said.
He however, called on civil servants to engage in agricultural and other meaningful ventures to sustain themselves rather than depending on the government.
“We will not share money as usual in the second tenure but will encourage all hardworking workers to improve and meet their needs,” he said.
The governor’s office staff thanked God for ensuring his victory at the polls and pledged to redouble their efforts in making him succeed.
Meanwhile, the Federal Inland Revenue Service (FIRS) on Wednesday refuted report of planned increment of national minimum wage.
The Head, Communication and Servicom Department, Mr Wahab Gbadamosi, made this known in a statement in Abuja.
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.
Gbadamosi explained that at the meeting, Fowler had called for an increase in the number of Nigerians and companies paying VAT and not a 50 per cent increase in VAT rate as reported.
He 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,” he said.
- NAN