Follow Us on Google
The Liberation Party of Nigeria (LiP), has frowned at the Federal Government’s proposal to sell some national assets and raise Value Added Tax (VAT) from 5 per cent to 7.5 per cent, to fund the implementation of the new minimum wage.
A recent statement by the party expressed concern that according to the report of the Presidential Technical Advisory Committee (PTAC) constituted by President Muhammadu Buhari on the implementation of the minimum wage, government would need about N4.2 trillion to pay the new minimum wage.
The statement, however, expressed doubts on the feasibility of sustaining the payment of the new wages through the sale of government assets, adding that the country has gone through this route of selling government assets some years ago. The outcome, it said, was to enrich the political class as most of the privatised companies were never turned around.
The party advised government to block the looting of the economy, reform the tax administrative system so that the rich can pay more tax to generate more funds to pay the new wages. It further urged the Buhari administration to monetise oil receipts at N360-U$ to the government; reduce or eliminate waivers, incentives and exemptions thereby increasing its revenue.
LiP further said, “there exist other frameworks such as commercialisation that can make state-owned enterprises more effective and efficient. The issue is to have a robust and transparent governance that would fight corruption, thievery and outright looting of the treasury to preserve or utilise such funds for the benefit of all Nigerians.
“More still, the unsustainable emoluments of politicians, which currently consume upward of 20 per cent of the national budget need whittling down and aligned with general emolument.”
The party in its statement, cautioned that while the increase in VAT may bring additional revenue to states, “it will ultimately discourage investment, particularly at this point when diversification of the economy is crucial and unemployment is very high.
It added, “though the N30,000 minimum wage will bring some relief to workers, it is however, a far cry as per the N66,000 monthly wage necessary in the context of the cost of living index. The workers would have some relief if government enacts policies that would return to providing quality education, quality health delivery and housing, among others, to workers and Nigerians in general.
“There is need to invest massively in various social programmes. Government should implement policies that would change the structure of the economy from that of consumption to production. “We need to restate that money saved from fighting corruption, taxing conspicuous consumption of the rich, broadening the tax net and providing mass private and public sector employment as well as the provision of basic needs to Nigerian workers, would enhance their welfare rather than a one off sale of state-owned assets.”
