By Oyinkansayo Wole-Bodunde.
The Minister of Finance, Mr. Wale Edun, has denied reports that the government has increased the Value-Added Tax (VAT) rate from 7.5% to 10%.
He confirmed that the VAT rate remains the same, as stated in the current tax laws. The government is committed to using tax policies to promote economic growth, reduce poverty, and support businesses.
Mr. Edun explained that the tax system is based on three key elements: tax policy, tax laws and tax administration. He emphasized that the government is not trying to make life difficult for Nigerians, but rather create a favorable environment for businesses to thrive.
The government has recently taken steps to relieve Nigerians and businesses by removing import duties, tariffs, and taxes on essential food items like rice, wheat, and beans. Mr. Edun reassured that the VAT rate will remain at 7.5% and will be applied to all applicable goods and services.
He clarified that the government’s focus is on using fiscal policies to drive sustainable economic growth, reduce poverty, and support businesses. The government is committed to creating a conducive environment for economic growth and development.
