Finance Minister Edun has dismissed circulating rumors of a Value Added Tax (VAT) hike to 10%, reassuring the public that no such increase is planned.
On Monday, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy discredited circulating rumors that increased Value-Added Tax (VAT) rates to 10 per cent from its current rate at 7.5 per cent.
In a signed statement, the Minister confirmed that the applicable VAT rate for goods and services in accordance with tax laws remains unchanged at 7.5 percent.
The government is currently levying a 7.5% VAT on a range of taxable goods and services, and it will adhere to the laws that dictate its actions accordingly – as will all federal agencies under its purview.
A solid taxation system requires a combination of well-constructed tax policy, effective tax laws and efficient tax administration. These three pillars work together to provide strength and support for the government’s fiscal position.
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As a government, our primary objective is to utilize fiscal policy in such a way that stimulates and reinforces robust and sustainable economic expansion while mitigating poverty alongside fostering prosperous businesses.
In certain media reports regarding the matter of VAT along with accompanying opinion pieces, there has been a misguided suggestion that the government intends to make life harder for Nigerians. However, this assertion is inaccurate. In fact, through its policies and actions thus far, the Federal Government has displayed its dedication towards establishing a favorable climate for businesses to prosper in Nigeria.
Recently, as a means to provide relief to Nigerians and local businesses, the Federal Government made an official record of their order ceasing import duties, tariffs and taxes on food items such as rice, wheat and beans.
Edun stated that as of today, VAT stands at 7.5% and it will be applied to all taxable goods and services for added emphasis.
