VAT remains at 7.5% — Finance minister

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has refuted reports claiming that the Value-Added Tax (VAT) rate has been raised from 7.5% to 10%.

In a statement issued on Monday, Edun confirmed that the VAT rate, as stipulated in current tax laws, remains at 7.5%.

He stated, “The current VAT rate is 7.5%, and this is the rate being charged on goods and services to which the tax applies. Neither the Federal Government nor any of its agencies will act contrary to our laws.”

The Minister said that the country’s tax system is built on three key pillars: tax policy, tax laws, and tax administration, all of which must work together to ensure a robust fiscal framework.

He noted the government’s commitment to using fiscal policy to drive sustainable economic growth, reduce poverty, and create a conducive environment for businesses to thrive.

Edun criticised media reports suggesting that the government aims to make life difficult for Nigerians, calling these claims misleading.

He said, “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 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 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.”

He also pointed out recent government efforts to alleviate economic burdens, such as the removal of import duties, tariffs, and taxes on essential food items like rice, wheat, and beans.

“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.