Finance Minister Wale Edun has dismissed speculation about a possible hike in Nigeria’s Value-Added Tax (VAT) rate, News About Nigeria reports.
In a statement on Monday, Edun said that the VAT rate would stay at 7.5%, countering rumours that it would rise to 10%.
Edun clarified that the government has no intentions of changing the current VAT rate, which has been set at 7.5% in accordance with the country’s tax laws.
“The 7.5% VAT is what is being charged on relevant goods and services, and this remains in line with our laws. The Federal Government has no plans to deviate from that,” Edun stated.
This announcement follows reports suggesting that Nigerians might face increased tax burdens amid the country’s economic challenges.
Edun, however, stated that the government’s fiscal policies are focused on creating a stable and conducive environment for businesses and individuals, rather than imposing additional financial pressures.
He noted that Nigeria’s tax system rests on three critical components: tax policy, laws, and administration.
According to the minister, these elements must work together to ensure efficient revenue collection and bolster the country’s economic health.
Addressing concerns that the government might take actions that would hurt businesses or worsen poverty, Edun refuted such claims, describing them as inaccurate.
“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 stated.
He pointed out that several recent initiatives, such as the suspension of duties on essential food imports like rice and beans, were designed to reduce the economic strain on Nigerians.
For clarity, he concluded by stating that the VAT rate will remain at 7.5%, with no plans for an increase in the near future.
