Former Kaduna Central Senator, Shehu Sani has reacted to the introduction of increased rate for Value Added Taxes, VAT, by the federal government.

Senator Sani, in doing so, established a link between the increased new minimum wage and the new VAT rate.

The Federal Government had announced N30,000 as the new minimum wage structure throughout the country, before announcing it was increasing from 5% to VAT to 7.2%.

Although the rise will need the agreement of the National Assembly, states and local government, the Federal government had stated it will take all 15% of the VAT, leaving States and Local Governments with the rest.

But reacting on Saturday in a tweet, Senator Sani likened the situation to the old saying of “Robbing Peter To Pay Paul”- a situation where wealth is gotten somewhere and expended elsewhere.

“Peter is for VAT,Paul is for new Minimum wage.” He tweeted

Peter is for VAT,Paul is for new Minimum wage.

— Senator Shehu Sani (@ShehuSani) September 14, 2019

Suggesting that the FG plans to generate excess of the new minimum wage structure from the rise on VAT.

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