The Nigerian government has refuted reports of a Value-Added Tax (VAT) rate increase from 7.5% to 10%. Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, confirmed that the VAT rate remains unchanged at 7.5%, as stipulated in the nation’s tax laws.
Edun emphasized the importance of maintaining a balanced tax system, built on three key pillars: tax policy, tax laws, and tax administration. He reassured Nigerians that fiscal policies aim to promote sustainable economic growth, reduce poverty, and support businesses.
The government has initiated measures to ease the financial burden on citizens, including the recent suspension of import duties, tariffs, and taxes on essential food items like rice, wheat, and beans. Edun clarified that the government is committed to creating a conducive environment for businesses to thrive, contrary to reports suggesting otherwise.
For emphasis, Edun reiterated that VAT remains at 7.5% and will continue to be applied to all VAT-eligible goods and services. The government’s focus is on using fiscal policy to enhance economic growth, reduce poverty, and support businesses.