The governor of Ebonyi state, Engr. David Umahi has criticized the plan by the federal government to increase Value Added Tax (VAT) from 5 percent to 35 percent in order to enable it pay the new minimum wage to workers.
He disclosed this on Wednesday when workers assigned to his office at the Government House, Abakiliki gathered to congratulate him over his victory at the just concluded poll.
He described the concept as digging a hole to fill a hole.
Umahi, who stood elected for second tenure in office however, told the people of the state and Nigerians not to celebrate yet but to note that tough time is ahead.
“Today, I read in the papers where the federal government is lifting VAT from 5 percent to 35 percent to pay salaries.
“For me, it’s all about digging a hole to fill a hole. We have not come to the point of realization of how to solve our problems. So, if VAT is lifted from 5 to 35 percent which means that any of us going to buy anything will pay 35 percent more.
“So, no one should celebrate yet, we are in for deeper problems all over the nation. No governor will make magic or President will make magic until we sit down to solve our problems.
“If they give us N2billion and the wage bill is N2billion, you cannot make any other magic. The most important thing we can do for civil servants is what I have done for you by giving loans to you”, he said.