Nigeria’s Finance Minister, Wale Edun, has dismissed reports that the Value-Added Tax (VAT) rate has been adjusted to 10% from 7.5%.
Edun clarified in a statement signed on Monday that the relevant tax laws and charges on goods and services remain at 7.5%.
He said the Nigerian Government is focused on introducing policies that will better the lives of Nigerians and not enervate the citizenry.
He emphasised that this is why the government recently introduced 150 days of zero import duty on staple foods such as rice, wheat, beans, and other items.
“The current VAT rate is 7.5 percent 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.
“The tax system stands on a tripod, namely tax policy, tax laws and tax administration. All three must combine well to give us a sound system that gives vitality to the fiscal position of the federal 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 the 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.
“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.
The statement was issued after Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, implied in an interview on Channels TV that there is a plan to increase VAT to 10% from 7.5%. His statement has since attracted criticism.
In response to the remark, former Vice President Atiku Abubakar described it as a threat that would negatively impact the Nigerian people.