Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has dismissed circulating reports suggesting that the Value-Added Tax (VAT) rate has been increased from 7.5% to 10%.
In a statement released on Monday and personally signed by the minister, Edun affirmed that the VAT rate, as stipulated in current tax laws, remains unchanged at 7.5% and continues to be applicable to all relevant goods and services.
“The current VAT rate is 7.5%, and this is the rate the government charges on a wide range of VAT-able goods and services. Neither the Federal Government nor any of its agencies will act contrary to the provisions of our laws,” the statement read.
He further explained that the nation’s tax system is built on three key pillars: tax policy, tax laws, and tax administration. For the system to function effectively, these elements must work together to support the government’s fiscal stability.
Edun reiterated the government’s commitment to using fiscal policy as a tool to drive sustainable economic growth, reduce poverty, and create a business-friendly environment. He refuted claims in some media reports that painted the government as working against the interests of Nigerians through its tax policies.
“It is on record that the Federal Government recently provided relief by stopping import duties, tariffs, and taxes on essential food items such as rice, wheat, and beans to ease the burden on Nigerians,” Edun noted.
In conclusion, the minister emphasized that VAT remains at 7.5% as of today, and this will continue to be the applicable rate for all VAT-eligible goods and services.
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