FG Denies Increasing VAT to 10%, Says It Remains at 7.5%

Oluwasegun SanusiSeptember 9, 20241 Mins read585

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has denied reports circulating that the Federal Government has increased the Value-Added Tax (VAT) rate from 7.5% to 10%.

Edun clarified this on Monday, affirming that the VAT rate remains unchanged at 7.5%, in line with the provisions of the current tax laws.

In a statement he signed, Edun assured Nigerians that the government is committed to upholding the existing tax structure, adding that neither the Federal Government nor any of its agencies will violate the law by imposing an unauthorised increase in VAT.

“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,” Edun said.

He further explained that Nigeria’s tax system operates on a solid foundation of tax policy, tax laws, and tax administration, all of which work in harmony to ensure a stable fiscal environment.

He noted that the government’s focus remains on using fiscal policies to drive economic growth, reduce poverty, and create a conducive environment for businesses to flourish.

Addressing concerns raised by some opinion pieces and reports suggesting that the government’s tax policies were making life harder for Nigerians, Edun refuted such claims, stating that the government is taking proactive steps to ease the burden on citizens.

“In fact, 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,” he emphasised.

The Minister reiterated that VAT remains at 7.5% and will continue to be charged on all VAT-able goods and services, denying earlier reports of increase.

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