Wale Edun, minister of finance, says the Federal Government has not increased the value-added tax (VAT) to 10 percent.
In a statement on Monday, Edun clarified that the current VAT rate, as stipulated in the country’s tax laws, remains at 7.5 percent.
“The current VAT rate is 7.5% and this is what government is charging on a spectrum of goods and services to which the tax is applicable,” Edun said.
“Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.”
Edun said the tax system stands on a tripod which includes tax policy, tax laws, and tax administration.
The minister said all three elements must work together to create a sound system that gives vitality to the government’s fiscal position.
He said the government’s focus is to utilise fiscal policy in ways that promote sustainable economic growth, alleviate poverty, and promote a thriving business environment.
“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 government is out to make life difficult for Nigerians,” he added.
“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.”
The finance minister was responding to claims, including by former Vice President Atiku Abubakar, that the President Bola Tinubu’s government had concluded plans to raise VAT.
In a statement he circulated on Sunday, Atiku had claimed that “President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5% to 10%, even as the NNPCL has announced a soaring PMS price increase at the pump.
“The increase in VAT is set to become the blazing inferno that will consume the very essence of our people.”
The former vice president further claimed that the “move unveils a new era of regressive and punitive policies, and its impact is destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.”
