The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has dismissed reports claiming that the Value-Added Tax (VAT) rate has been increased to 10% from 7.5%.
In a statement issued on Monday, Edun clarified that the current VAT rate remains at 7.5%, as stipulated by existing tax laws.
“The current VAT rate is 7.5%, and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate,” Edun affirmed.
He emphasized that the government’s focus is on using fiscal policy to promote sustainable economic growth, reduce poverty, and create a business-friendly environment.
Refuting the claims, Edun highlighted that recent media reports suggesting a VAT increase have misrepresented the government’s intentions.
He added that recent policies, such as the suspension of import duties and taxes on essential food items, demonstrate the government’s commitment to easing the financial burden on Nigerians.
“For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able,” the minister concluded.