The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Monday, dismissed claims that the Value-Added Tax (VAT) rate had been raised from 7.5% to 10%.
In a statement, Edun made it clear that the VAT rate, as prescribed by law, remains unchanged at 7.5% and applies to all relevant goods and services.
“The current VAT rate is 7.5 percent and this is what 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,” Edun stated.
He emphasized the importance of the three core pillars of Nigeria’s tax system: tax policy, tax laws, and tax administration, explaining that these elements work together to maintain fiscal stability.
The government’s primary objective, Edun reiterated, is to use fiscal policy to foster sustainable economic growth, reduce poverty, and enable businesses to thrive.
Addressing concerns raised in some media reports, including those voiced by former Vice President Atiku Abubakar, Edun refuted any suggestion that the government was making life harder for Nigerians through its tax policies.
“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 government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive,” he explained.
As an example of government efforts to support citizens and businesses, Edun highlighted recent measures to suspend import duties, tariffs, and taxes on essential food items like rice, wheat, and beans.
“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 reaffirmed.
This response came in reaction to allegations, including those by Atiku, that President Bola Tinubu’s administration was preparing to increase VAT.
