Wale Edun, Nigeria's Minister of Finance, confirmed that the Value-Added Tax (VAT) rate remains at 7.5%, contrary to rumors of an increase to 10%. He emphasized the government's commitment to fostering economic growth and reducing poverty through supportive fiscal policies and tax regulations.
On Monday, Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, refuted claims that the Value-Added Tax (VAT) rate had been raised from 7.5% to 10%. In a clear statement, Edun confirmed that the current VAT rate remains fixed at 7.5% as stipulated by existing tax laws.
"The VAT rate applicable to goods and services continues to be 7.5%," Edun stated. He emphasized that the Federal Government and its agencies would adhere strictly to the legal framework governing tax rates.
Edun articulated the necessity of a cohesive tax system, highlighting the importance of effective tax policy, laws, and administration. He noted that these components work together to bolster the government’s fiscal standing, enabling efforts to enhance economic growth, reduce poverty, and promote business success.
Addressing concerns arising from media reports suggesting the government aims to increase financial burdens on Nigerians, Edun reassured citizens that the administration is focused on fostering a supportive environment for businesses. He pointed out recent initiatives, such as the suspension of import duties and taxes on vital food items like rice and wheat, aimed at alleviating economic challenges for the populace.
Reiterating his message, Edun stated, "As of today, VAT remains at 7.5%, and this rate will be applied to all VAT-able goods and services," providing much-needed clarity on the matter and affirming the government's commitment to economic stability.
