Finance Minister Wale Edun has categorically denied reports of a potential increase in Value-Added Tax (VAT) from 7.5 per cent to 10 per cent.
In a statement released on Monday, Edun reaffirmed that the current VAT rate remains firmly in place, as stipulated in Nigeria’s tax laws.
Contrary to speculation, he said, the Federal Government has no plans to adjust the VAT rate, which applies to a range of goods and services.
Edun stressed that the government will not act against to the provisions of the law. The minister explained that Nigeria’s tax framework operates on three key components: tax policy, tax law, and tax administration.
He said:
“All three must work in harmony to create a sound system that supports the government’s fiscal position.”
READ ALSO: NLC Demands Reversal of Petrol Price Hike, Electricity Tariff Increase
Addressing public concerns about potentially burdensome policies, Edun assured that fiscal measures aim to promote sustainable growth, reduce poverty, and support businesses.
The Ministry said:
“Our focus is on using fiscal policy to enhance strong and sustainable economic growth, reduce poverty, and create an environment where businesses can thrive.”
Edun also refuted claims that the government is imposing undue hardship on citizens. He cited recent actions taken by the government to alleviate financial strain, including the elimination of import duties on essential food items such as rice, wheat, and beans.
The minister reiterated that the VAT rate remains unchanged at 7.5 per cent and will continue to apply to all eligible goods and services.
Edun said:
“To emphasize, VAT remains at 7.5% and will be charged on all VAT-able goods and services.”
