By kawaekwune Jeffrey
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has dismissed rumors circulating across various media platforms that the Federal Government of Nigeria has increased the Value-Added Tax (VAT) rate from 7.5% to 10%.
Edun in a statement issued on Monday, clarified that the VAT rate remains firmly at 7.5%, in line with the provisions of the current tax laws.
According to him, the structure of Nigeria’s tax system is based on three core pillars: tax policy, tax laws, and tax administration.
While reacting to recent media reports, he stressed that for the tax system to function effectively, these three elements must work in harmony. According to the minister, maintaining a sound tax system is essential for strengthening the fiscal health of the government and ensuring that revenue generation supports national development goals.
“Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty, and makes businesses flourish,” Edun said. He pointed out that the government’s fiscal policies are designed to balance revenue generation with economic development and welfare initiatives.
The minister also addressed concerns raised in opinion articles and reports suggesting that the government’s tax policies might be aimed at making life more difficult for Nigerians. He dismissed these concerns as misleading, stating that the government is committed to easing the economic burden on citizens and creating a conducive environment for businesses to thrive.
Edun also recalled what he called recent measures taken by the Federal Government to provide relief to Nigerians, including the suspension of import duties, tariffs, and taxes on essential food items such as rice, wheat, and beans. These steps, he noted, are part of broader efforts to mitigate the impact of rising inflation and ensure food security in the country.
“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,” he emphasized.
In closing, Edun reaffirmed that as of now, the VAT rate remains unchanged at 7.5%, and this rate will continue to apply to all VAT-able goods and services. He urged Nigerians and businesses to disregard the misinformation about any purported VAT increase.
