Governor David Umahi of Ebonyi State has described Federal Government’s plan to increase the Value Added Tax (VAT) from 5 percent to 35 percent as well as the decision to pay the new N30, 000 minimum wage as digging a hole to fill a hole.
Umahi, who made the statement while addressing some state government officials in his office after his reelection for second term, described the FG’s gestures as Greek gift to citizens.
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 percent 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 pay.
“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. 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 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 urged civil servants to engage in agriculture and other meaningful ventures to sustain themselves rather than depending on stipends from government.
