Minister of Finance, Wale Edun, VAT
By Victory Oghene
The Federal Government has finally bowed to pressure on the proposed increase in the Value Added Tax (VAT) to 10%, insisting that ‘VAT remains 7.5%’.
According to the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, VAT will remain 7.5%.
The minister debunked reports that the rate for Value Added Tax (VAT) has been upwardly adjusted to 10% from 7.5%.
The minister, in a statement issued on Monday, September 10, 2024, affirmed that the VAT rate as contained in relevant tax laws and chargeable on goods and services remains 7.5%.
“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.
“The tax system stands on a tripod, namely tax policy, tax laws and tax administration. All the three must combine well to give us a sound system that gives vitality to the fiscal position of the government.
“Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty as well as makes businesses flourish.
“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.
“In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs and taxes on rice, wheat, beans and other food items.
“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,” Edun said.
It would be recalled that the Chairman Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, five days ago said that the committee would propose a law to the nation’s legislative body to increase Valued Added Tax, VAT, from the current 7.5 per cent to 10 per cent.
He made this known while speaking on Channels TV’s Politics Today.
According to him, the presidential tax committee was working to consolidate multiple taxes in Nigeria to ensure tax reduction, adding that a draft tax law would soon be submitted to the National Assembly.
