The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has dismissed rumors of an increase in Nigeria’s Value-Added Tax (VAT) from 7.5 percent to 10 percent.
In a statement released on Monday, Edun reaffirmed that the VAT rate remains unchanged at 7.5 percent, as stipulated by the nation’s tax laws.
He emphasized that neither the Federal Government nor its agencies would act contrary to the law, adding, “The current VAT rate is 7.5%, and this is what the government is charging on a spectrum of goods and services.”
Edun highlighted the importance of a balanced tax system, which is built on three essential pillars: tax policy, tax laws, and tax administration. He explained that these components work together to strengthen the government’s fiscal position.
Addressing concerns about potential government actions that may be perceived as burdensome, Edun assured Nigerians that the government’s fiscal policies are geared towards fostering sustainable economic growth and alleviating poverty. He dismissed media reports suggesting that the government was imposing additional hardship on citizens, labeling them as inaccurate.
He also pointed out that the government has recently taken steps to ease the financial strain on Nigerians by suspending import duties, tariffs, and taxes on food items like rice, wheat, and beans.
Edun reiterated that VAT remains at 7.5 percent and will continue to be applied to all VAT-eligible goods and services.
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