VAT Remains 7.5% – Says FG

The Federal Government has refuted circulating claims that the Value-Added Tax (VAT) rate has been increased from 7.5 percent to 10 percent.

In a statement issued on Monday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed that the VAT rate, as specified in the relevant tax legislation, continues to be set at 7.5 percent.

He emphasized that this rate is what the government applies to a range of goods and services subject to the tax.
Consequently, Edun stated that neither the Federal Government nor any of its agencies will deviate from the provisions established by law.

The statement added: “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 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.

“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.

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“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.”