VAT Remains at 7.5%, Minister Edun Clarifies

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has refuted claims that the Value-Added Tax (VAT) rate has been increased from 7.5% to 10%. In a statement issued on Monday, Edun emphasized that the VAT rate remains unchanged at 7.5%, as stipulated by existing tax laws.

“The current VAT rate is 7.5%, and this is what the government is charging on applicable goods and services. Neither the Federal Government nor its agencies will act outside what is prescribed by law,” Edun stated.

He stressed the importance of a stable tax system, built on tax policy, tax laws, and tax administration, to ensure fiscal stability. Edun also highlighted the government’s commitment to using fiscal policy to promote economic growth, reduce poverty, and support businesses.

Addressing concerns raised by some media outlets, Edun dismissed the notion that the government is making life more difficult for Nigerians. He pointed to recent measures, including the suspension of import duties, tariffs, and taxes on essential food items like rice, wheat, and beans, as proof of the government’s efforts to ease the burden on citizens and businesses.

“For clarity, VAT remains at 7.5% and will continue to be applied to all VAT-able goods and services,” Edun reiterated.