The Federal Government has dismissed claims of a Value Added Tax (VAT) increase to 10%, reaffirming that the current rate remains unchanged at 7.5%. This clarification was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, in a statement on Monday.
Edun emphasized that the government’s fiscal policies prioritize economic development, poverty reduction, and business growth, rather than imposing additional financial burdens on Nigerians. He noted that the tax system relies on a tripod of tax policy, tax laws, and tax administration, ensuring a sound system that supports the government’s fiscal position.
The denial comes after Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, proposed a law to increase VAT from 7.5% to 10% starting in 2025. Former presidential aspirant Atiku Abubakar had also criticized the alleged increase, warning of its potential to exacerbate economic hardship.
The government’s stance aims to alleviate concerns and provide clarity on the VAT rate, ensuring that businesses and individuals are aware of the current tax laws and regulations.