Finance Minister Edun: No Plans to Increase VAT Rate from 7.5%
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In a statement released on Monday and signed by Edun, the minister clarified that the VAT rate remains unchanged at 7.5 percent, as outlined in Nigeria’s tax laws.
“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 stated.
Edun emphasized the need for a balanced tax system and highlighted that Nigeria’s tax framework operates on three key components: tax policy, tax laws, and tax administration.
The minister also addressed concerns over fiscal policies, reassuring Nigerians that government measures are aimed at promoting sustainable economic growth and reducing poverty, rather than creating burdens.
“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 supports business growth,” Edun said.
Responding to media reports suggesting the government is attempting to impose additional hardships on Nigerians, Edun called such claims inaccurate and misleading.
Edun also pointed to recent government initiatives aimed at easing financial pressure on citizens, particularly regarding food imports.
“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,” he noted.
“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 concluded.