The National Leader of the ruling All Progressives Congress (APC), Asiwaju Ahmed Bola Tinubu on Thursday urged the Federal Government not to increase the Value Added Tax (VAT).

Speaking during the 11th Bola Tinubu Colloquium to mark his 67th birthday held at the International Conference Centre in Abjua, Tinubu said an increase in VAT will reduce the spending capacity of the people and might increase the hardship on the citizens.

 Following the approval of ₦30,000 as the  National Minimum Wage by the National Assembly, the Minister of Budget and National Planning, Senator Udo Udoma and the Chairman of the Federal Inland Revenue Service, Mr. Babatunde Fowler had said the Federal Government was considering an upward review of the Value Added Tax by 50 percent.

Udoma and Fowler who stated this on Tuesday when they appeared before the Senate Committee on Finance said the increment was to, among others things enable the Federal Government to fund the new national minimum wage.

Fowler said the proposed payable VAT by Nigerians, based on the increment ,would actually be between 35 percent (6.75%) and 50 percent (7.25%). The government is currently charging five percent VAT on all products in the country.