The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has refuted circulating reports suggesting that the Value-Added Tax (VAT) rate has been increased to 10% from 7.5%.
Edun noted that the VAT rate remains unchanged at 7.5%, as specified by relevant tax laws.
“The current VAT rate is 7.5% and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate,” the minister said in a statement signed by him.
He elaborated on the tax system, saying, “The tax system stands on a tripod, namely tax policy, tax laws, and tax administration. All three must combine well to give us a sound system that gives vitality to the fiscal position of the government.”
Edun also addressed concerns raised by media reports, emphasizing that the government’s fiscal policies aim to foster economic growth, reduce poverty, and support business development.
He said,“The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that the government is out to make life difficult for Nigerians. That is not correct.”
Highlighting recent government efforts to ease economic pressure, Edun stated, “It is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs, and taxes on rice, wheat, beans, and other food items.”
“For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able,” Edun reiterated.
