THE Minister of Finance and Coordinating Minister of the Economy, Wale Edun, today refuted claims that the Value-Added Tax (VAT) rate had been increased from 7.5% to 10%.
In a statement personally signed by him, the Minister confirmed that the VAT rate, as established in existing tax laws, remains 7.5% for goods and services.
He stated, “The current VAT rate is 7.5%, and this is the rate the government is charging on applicable goods and services. Neither the Federal Government nor any of its agencies will act contrary to the provisions of the law.
“The tax system relies on three pillars: tax policy, tax laws, and tax administration. All must work in harmony to maintain a robust system that strengthens the government’s fiscal position.
“Our government’s fiscal policy is designed to foster sustainable economic growth, reduce poverty, and create a business-friendly environment.
“Some media reports on the VAT issue and subsequent opinion articles have inaccurately suggested that the government is seeking to impose hardships on Nigerians. This is untrue. On the contrary, the Federal Government has shown through its policies that it is committed to providing a favorable environment for businesses.
“As a matter of record, the government recently removed import duties, tariffs, and taxes on essential food items such as rice, wheat, and beans, to ease the burden on Nigerians and businesses.
“To reiterate, the VAT rate remains 7.5%, and this is what will be applied to all VAT-eligible goods and services,” Edun clarified.