7.5% VAT Rate Stays: Nigerian Minister Dismisses Rumors of VAT Hike

Finance Minister Wale Edun quelled rumors of a looming VAT rate hike, firmly asserting that the VAT rate will remain at 7.5%, in accordance with the nation’s tax laws.

Edun underlined the need for a cohesive tax system, stressing the importance of a well-balanced combination of tax policy, tax laws, and tax administration to ensure fiscal stability.

“The tax system must stand on a tripod of policy, law, and administration, all working harmoniously to give us a sound system that supports the government’s financial position,” he emphasized.

In response to accusations that the government is imposing undue hardship on Nigerians, Edun refuted such claims and pointed to recent measures taken by the government to ease financial strain.

“The government is not out to make life difficult for Nigerians,” Edun insisted. “Rather, it has implemented policies aimed at creating a favorable environment for businesses to thrive. For instance, we recently stopped all import duties, tariffs, and taxes on essential food items like rice, wheat, and beans.”

Edun reaffirmed the government’s commitment to implementing fiscal measures that will foster economic growth, reduce poverty, and allow businesses to flourish.

“Our focus as a government is to use fiscal policy in a manner that promotes strong and sustainable economic growth, reduces poverty, and allows businesses to thrive,” Edun stated.

He reiterated that the VAT rate will remain unchanged and will continue to be applied to all applicable goods and services, dispelling any rumors or speculation to the contrary.

References and Citations:

• PULSE Nigeria – FG denies plans to raise VAT amid economic concerns
• PUNCH – VAT rate remains 7.5%, Says FG
• Naija News – FG denies VAT increase, Confirms 7.5% rate stands