In the end, the Federal Government gave in to public pressure on the proposed Value Added Tax (VAT) rise to 10%, stating that “VAT remains 7.5%.”
VAT will continue to be 7.5%, according to Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy. He refuted allegations that the Value Added Tax (VAT) rate was raised from 7.5% to 10%.
The minister confirmed that the 7.5% VAT rate applies to goods and services as per applicable tax rules in a statement released on Monday, September 10, 2024, available to BrandSpur Nigeria news today.
Min. Edun had this to say: “The current VAT rate is 7.5% and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.
“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.”
Speaking further: “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.
“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,” he added.
Recall that five days ago, Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, declared that the committee would present a bill to the country’s legislature to raise the Value Added Tax, or VAT, from the existing 7.5% to 10%. He said this during a speech on Politics Today on Channels TV.
However, he said that to assure tax reduction, the presidential tax committee was working to combine various taxes in Nigeria and that a draft tax bill would soon be presented to the National Assembly.
