Nigeria’s Finance Minister, Wale Edun, has dismissed reports of a Value-Added Tax (VAT) rate increase from 7.5% to 10%. In a statement, Edun affirmed that the VAT rate remains 7.5% as stipulated in tax laws and applicable to various goods and services.
“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.”
“Neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.”
“Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth reduces poverty as well as makes businesses flourish.”
“For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all goods and services that are VAT-able”, Edun said.
He emphasized the importance of a sound tax system, comprising tax policy, tax laws, and tax administration, to promote economic growth, reduce poverty, and support businesses.
Edun noted that some media reports and opinion articles had incorrectly conveyed that the government aimed to make life difficult for Nigerians. However, he highlighted the government’s efforts to create a conducive environment for businesses and relieve Nigerians and businesses, including the recent suspension of import duties, tariffs, and taxes on essential food items.
“For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all goods and services that are VAT-able,” Edun reiterated.