We Proposed Complete Removal Of VAT Not 10% Increase – Oyedele

The Chairman of the Presidential Committee on Tax Reforms, Taiwo Oyedele, has said his committee’s proposal was a complete removal of Value Added Tax (VAT) and not 10% increase.

Dr. Taiwo Oyedele said this in a statement on Tuesday while reacting to reports that claimed his committee proposed a 10 percent VAT increase to the federal government.

In the interview granted on Monday, Naijaonpoint reported that Oyedele said his committee proposed the removal of VAT on house rents, food items and public transport system.

In the report, he also stated that the federal government is expected to cut taxes for employers providing transport services for their staff. Another tax cut will be given to employers that employ more staff than they would normally need.

Some reports, however, on Tuesday, misquoted Oyedele to have said there would be an increase in VAT to 10 percent.

In his statement, on Tuesday, on his X handle, he regretted that the reports were written against what he said in the interview which was reported by Naijaonpoint.

“The same interview, very different reportage and choices of headlines. Bad news sells faster, so some journalists will spin any news just to sell. Some of the quotes attributed to me in some of the reports are not my words.

“My committee’s proposal for VAT is to reduce the rate to zero percent (0%) for food, health, education, and exemption for rent, transportation, and small businesses.

“Our data shows that these are the areas where the average person spend almost all their income, meaning their VAT burden will reduce. The upward rate adjustment is on other items to partly offset the reduction in rate and exemption for basic consumptions ensuring that the masses are protected,” Oyedele clarified.