Nigeria’s Minister of Finance, Wale Edun, has dismissed reports suggesting an increase in the Value-Added Tax (VAT) rate from 7.5% to 10%. In a statement issued on Monday, Edun reaffirmed that the VAT rate remains 7.5% as specified in existing tax laws.
He emphasized the government’s commitment to policies that enhance the quality of life for Nigerians, rather than creating hardship. The Finance Minister highlighted recent government initiatives such as the 150-day zero import duty on staple foods like rice, wheat, and beans as evidence of this commitment.
“The current VAT rate is 7.5%, and this is what the government is charging on goods and services subject to VAT,” Edun stated. He reiterated that neither the Federal Government nor its agencies would act against the laws in place.
Edun’s clarification follows comments by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, who hinted at a potential proposal to increase the VAT rate to 10%. The suggestion has sparked widespread criticism, including from former Vice President Atiku Abubakar, who warned it could severely impact Nigerians.
The Finance Minister underscored that the government’s focus remains on fostering a business-friendly environment, promoting economic growth, reducing poverty, and supporting sustainable business practices.
