The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has dismissed claims of a proposed increase in the Value-Added Tax (VAT) rate from 7.5% to 10%. In a statement released on Monday, Edun clarified that the VAT rate remains unchanged at 7.5%, as established by the country’s tax laws.
“The current VAT rate is 7.5%, and this is what the government is applying to applicable goods and services. Neither the Federal Government nor any of its agencies will act outside the bounds of the law,” Edun affirmed.
He emphasized the importance of a balanced tax system, highlighting that Nigeria’s tax framework is structured around tax policy, tax laws, and tax administration. These elements, he noted, must work together to ensure the country’s fiscal stability.
Edun also addressed concerns that the government’s policies might impose undue hardship, assuring that fiscal policies are designed to foster economic growth and reduce poverty.
“Our government is focused on using fiscal policy to promote sustainable economic growth, reduce poverty, and support business growth,” he stated.
In response to media reports suggesting that the government is adding to citizens’ financial burden, Edun called these claims inaccurate. He emphasized that recent government actions, such as removing import duties and taxes on essential food items like rice, wheat, and beans, demonstrate its commitment to easing economic pressure on Nigerians.
“For clarity, VAT remains at 7.5% and will continue to be applied to all eligible goods and services,” Edun concluded.
