Nigerian Finance Minister Confirms VAT Rate Remains at 7.5%

On Monday, Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, addressed rumors about an increase in the Value-Added Tax (VAT) rate. Contrary to circulating reports, Edun confirmed that the VAT rate remains unchanged at 7.5%, as mandated by existing tax laws.

In a statement issued by the Minister, he clarified that, “The current VAT rate is 7.5% and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.”

Edun emphasized the importance of aligning tax policy, tax laws, and tax administration to ensure a robust fiscal system that supports economic growth, reduces poverty, and fosters a thriving business environment. He noted that recent media reports and opinion articles misrepresented the government’s intentions, suggesting that it aims to impose further financial burdens on Nigerians.

Addressing these concerns, Edun pointed out that the Federal Government has recently implemented measures to alleviate economic pressures. He highlighted the suspension of import duties, tariffs, and taxes on essential items such as rice, wheat, beans, and other food products as evidence of the government’s commitment to easing financial strains on citizens and businesses.

Reaffirming the current policy, Edun stated, “For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able.”

Written By; Christopher Emuakpeje

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