This post has already been read 241 times!
The Federal Government, through the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has clarified that the Value-Added Tax (VAT) rate in Nigeria remains at 7.5%. This announcement comes in response to widespread rumors suggesting a possible hike in VAT from 7.5% to 10%, which had sparked concerns among businesses and the public.
In a statement released on Monday, Mr. Edun firmly dismissed the reports as unfounded and assured Nigerians that the government has not altered the current VAT rate. “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,” he said. “Neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.”
Mr. Edun also highlighted the importance of maintaining a sound tax system, explaining that it relies on the balance of three elements: tax policy, tax laws, and tax administration. He emphasized that these components must work together to support the government’s fiscal objectives, which aim to foster strong economic growth, reduce poverty, and create a favorable environment for businesses.
Addressing concerns raised in some media reports, the Minister reassured Nigerians that the government is not implementing policies to make life more difficult for its citizens. He pointed to recent measures taken by the Federal Government to ease financial burdens, such as the suspension of import duties, tariffs, and taxes on essential food items like rice, wheat, and beans.
Mr. Edun reiterated that the government’s fiscal policies are designed to support sustainable economic development and improve the livelihoods of Nigerians. “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,” he explained.He concluded by reaffirming that the VAT rate remains unchanged, stating: “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.”
The clarification is expected to bring relief to businesses and consumers alike, dispelling concerns over any immediate tax burden increases.
