Finance Minister and Coordinating Minister of the Economy Wale Edun has on Monday, dismissed circulating reports that the Value-Added Tax (VAT) has been raised from 7.5% to 10%.
In a statement he signed, the Minister affirmed that the Value-Added Tax (VAT) rate, as outlined in existing tax laws, remains fixed at 7.5%. He emphasized, ‘The current VAT rate is 7.5%, which the government applies to a range of goods and services. Neither the Federal Government nor its agencies will deviate from our legal stipulations.
Addressing concerns raised by the public and media, Edun emphasized that the current VAT rate, as stipulated in relevant tax laws, will continue to apply to goods and services across the country.
He highlighted the importance of a cohesive tax system, stating, ‘Our tax framework relies on three pillars: tax policy, tax laws, and tax administration. All must work in harmony to ensure a robust fiscal position for the government.’
The Minister reiterated the government’s commitment to utilizing fiscal policy to foster sustainable economic growth, alleviate poverty, and support business development.
The Minister addressed misconceptions in recent media reports regarding VAT, stating that some articles incorrectly suggest the government aims to complicate life for Nigerians. ‘That is not accurate,’ he asserted, emphasizing that the Federal Government is dedicated to fostering a supportive environment for business growth.
In his remarks, the Minister also noted the government’s ongoing commitment to creating a conducive atmosphere for business growth. He pointed out recent efforts to alleviate the financial burden on Nigerians, including the suspension of import duties, tariffs, and taxes on essential food items such as rice, wheat, and beans.
He noted, ‘In fact, the Federal Government has recently suspended import duties, tariffs, and taxes on rice, wheat, beans, and other essential food items to provide relief for Nigerians and businesses.’
For clarity, Edun reiterated, ‘As of today, VAT remains at 7.5%, and this rate will apply to all goods and services subject to VAT.’
