Finance Minister Denies VAT Increase, Confirms 7.5% Rate Remains Unchanged

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has refuted reports suggesting an increase in the Value-Added Tax (VAT) rate from 7.5% to 10%. In a statement issued on Monday, the minister clarified that the current VAT rate remains at 7.5%, in line with the existing tax laws.

Edun emphasized that the federal government and its agencies will continue to adhere to the stipulated VAT rate as outlined in the nation’s tax regulations. “The VAT rate remains at 7.5%, and this is what the government charges on applicable goods and services. We will not deviate from what our laws mandate,” the minister stated.

He further explained that Nigeria’s tax system is built on three pillars: tax policy, tax laws, and tax administration. These components must work together effectively to support the government’s fiscal strategy. Edun reiterated the government’s commitment to using fiscal policy to drive sustainable economic growth, alleviate poverty, and foster a business-friendly environment.

Addressing the misconceptions in some media reports, Edun assured Nigerians that the government is not aiming to impose additional burdens. “The idea that the government is making life harder for Nigerians is simply not true. Our policies have consistently aimed to create a favorable environment for businesses to succeed,” he added.

The minister also highlighted recent government efforts to provide relief, including the suspension of import duties, tariffs, and taxes on essential food items like rice, wheat, and beans. He concluded by reaffirming that the VAT rate remains unchanged at 7.5%, and this will continue to be applied to all VAT-eligible goods and services.

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