The federal government has dismissed any possible increase in Nigeria’s Value-Added Tax (VAT) from 7.5 per cent to 10 per cent.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, denied the claims in a statement he issued on Monday.
Edun said any attempt to raise VAT would impact Nigeria’s fiscal stability. According to him, the issue of VAT raise is still a recommendation.
He said, “The current VAT rate is 7.5 per cent, 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.”
Recall that the chairman of the presidential tax committee, Taiwo Oyedele hinted at a possible review of VAT from 7.5 per cent to 10 per cent.
Oyedele has however said that he was misquoted.
Edun maintained the Bola Tinubu administration’s commitment to using fiscal policy to achieve robust and sustainable economic growth and reduce poverty.
He said, “The tax system stands on a tripod, namely tax policy, tax laws, and tax administration. All three must combine well to give us a sound system that gives vitality to the fiscal position of the government.
“It is on record that the federal government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs, and taxes on rice, wheat, beans, and other food items.
“The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that the government is out to make life difficult for Nigerians. That is not correct.
“If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.”