The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has categorically denied reports circulating in the media that the Value-Added Tax (VAT) rate has been increased from 7.5% to 10%. In a statement released on Monday, Edun reaffirmed that the current VAT rate remains unchanged at 7.5%, as stipulated in relevant tax laws.
Mr. Edun emphasized that the Federal Government and its agencies will not act in contravention of the tax laws, which are designed to promote a sound tax system. He explained that the tax system is built on a tripod of tax policy, tax laws, and tax administration, all of which must work together to support the government’s fiscal position and economic growth objectives.
The Minister highlighted the government’s commitment to using fiscal policy to drive strong and sustainable economic growth, reduce poverty, and create an enabling environment for businesses to thrive. He noted that the government has demonstrated its support for Nigerians and businesses through various policy initiatives, including the recent exemption of import duties, tariffs, and taxes on essential food items such as rice, wheat, and beans.
VAT Rate Remains Unchanged
Mr. Edun reiterated that the VAT rate remains 7.5% and will continue to be charged on all applicable goods and services. He urged the public to disregard any reports or opinions suggesting a VAT increase, assuring that the government is dedicated to creating a favorable business environment and promoting economic growth.
The Minister’s statement underscores the government’s commitment to transparency and accuracy in its communication with the public. By dispelling the rumors and reaffirming the current VAT rate, Edun has helped to maintain stability and confidence in the tax system, which is essential for economic growth and development.
