Finance Minister Denies Increase in Value-Added Tax Rate
Abuja, September 9, 2024 – The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has refuted reports suggesting an increase in Nigeria’s Value-Added Tax (VAT) rate from 7.5% to 10%. In a statement released on Monday, Edun clarified that the VAT rate remains unchanged at 7.5%, in line with existing tax laws.
“The current VAT rate is 7.5%, and this is what the government is charging on goods and services subject to VAT. Neither the Federal Government nor any of its agencies will act in violation of these laws,” the Minister stated.
Edun further explained the structure of Nigeria’s tax system, emphasizing its foundation on three key pillars: tax policy, tax laws, and tax administration. He noted that these elements must work harmoniously to maintain a robust fiscal system that supports the government’s financial position.
“Our focus as a government is to use fiscal policy to drive strong and sustainable economic growth, reduce poverty, and create an environment where businesses can thrive,” Edun added.
The Minister dismissed claims that the government’s tax policies are designed to burden Nigerians, pointing instead to recent relief measures. “Contrary to the misinformation being circulated, the Federal Government has shown its commitment to easing the cost of living. As part of these efforts, we recently suspended import duties, tariffs, and taxes on essential food items such as rice, wheat, and beans.”
Reiterating the government’s stance on VAT, Edun confirmed, “As of today, VAT remains at 7.5%, and this is the rate applicable to all VAT-able goods and services.”
The clarification follows widespread speculation in some media outlets, which inaccurately reported a planned increase in VAT, sparking concerns about the potential impact on consumers and businesses.
The Federal Government continues to advocate for policies that promote economic growth and provide relief to Nigerians amidst rising living costs.
