VAT Rate Remains 7.5%, Finance Minister Clarifies Amidst Public Concern

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has dismissed reports that the value-added tax (VAT) rate has been increased from 7.5% to 10%. 

 He emphasized in a statement released on Sunday, September 8, that the VAT rate remains at 7.5%, as stipulated by the country’s tax laws, and no changes have been made by the Federal Government or its agencies.

 Edun’s clarification followed public concern over a recommendation by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, suggesting a possible upward review of VAT to 10%. 

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 This proposal sparked widespread reactions, with many Nigerians, including former Vice President Atiku Abubakar, criticizing the idea. 

 However, Edun assured that no such increase has been implemented up until now, stating, 

 “VAT remains 7.5%, and that is what will be charged on all VAT-able goods and services.”

 The Finance Minister further highlighted the government’s commitment to creating a conducive environment for businesses to thrive, pointing out recent relief measures, such as the removal of import duties on essential food items like rice, wheat, and beans. 

 He emphasized that any communication from the government is intended to foster sustainable economic growth and reduce poverty in the country and among the people.