Edun debunks rumors of VAT increase to 10%

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has refuted claims that the Value-Added Tax (VAT) rate has been raised to 10% from the current 7.5%.

In a statement released on Monday, Edun clarified that the VAT rate remains at 7.5%, as outlined in the country’s tax laws.

“The current VAT rate is 7.5%, and this is what the government is charging on a range of goods and services to which the tax applies. Neither the Federal Government nor its agencies will act contrary to what our laws stipulate,” the Minister affirmed.

Edun emphasized the importance of a balanced tax system, explaining that it is built on three pillars: tax policy, tax laws, and tax administration. According to him, the government is focused on utilizing fiscal policy to drive sustainable economic growth, alleviate poverty, and support business development.

Responding to media reports suggesting a VAT hike, Edun rejected the notion that the government is seeking to burden Nigerians.

“The imputation in some media reports on VAT and the resulting opinion pieces seem to wrongly suggest that the government is making life difficult for Nigerians. That is not correct,” he stated.

He also highlighted the government’s recent measures to ease economic pressure, including the suspension of import duties, tariffs, and taxes on essential food items like rice, wheat, and beans.

In conclusion, Edun reiterated, “For emphasis, as of today, VAT remains 7.5%, and that is what will be charged on all VAT-able goods and services.”