The Federal Government of Nigeria has debunked claims that it plans to increase the Value-Added Tax rate from 7.5 per cent to 10 per cent.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, in a statement released on Monday, September 9, said that the VAT rate remains unchanged at 7.5 per cent, as stipulated in the nation’s tax laws.
The minister said, “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.
He also noted that the importance of maintaining a balanced tax system in Nigeria’s tax framework is key to the existing three key pillars- tax policy, tax laws, and tax administration.
“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,” the minister said.
Describing the report that painted the government as trying to bring more hardship to the people as false, Edun said the FG through its policies have demonstrated that it is committed to creating a congenial environment for businesses to thrive.
“Today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able,” he added.
