Minister of Finance, Wale Edun has said federal government has not increased value-added tax (VAT) to 10 percent.
Gatekeepers News reports that Edun said this through a statement released on Monday, clarifying that the current VAT rate, as stipulated in the country’s tax laws, remains at 7.5 percent.
He said, “The current VAT rate is 7.5% and this is what 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 minister noted that the tax system stands on a tripod that includes tax policy, tax laws, and tax administration that must work together to create a sound system that gives vitality to the government’s fiscal position.
Edun said the government’s focus is to make use of fiscal policy to promote sustainable economic growth, alleviate poverty, and promote a thriving business environment.
He said, “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. “
“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.”
Recall that Taiwo Oyedele, chairman of presidential committee on fiscal policy and tax reforms, Taiwo Oyedele on May 8, said there is a need to increase VAT rate.
Former vice president Atiku Abubakar opposed it on September 8, calling it a “regressive and punitive policy” that its impact could deepen the domestic cost-of-living crisis.
