By Anwar Usman
Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has debunked reports suggesting an increase in the Value-Added Tax rate from 7.5 percent to 10 percent.
In a statement signed by him on Monday, Edun clarified that the VAT rate remains unchanged at 7.5 percent, as stipulated in the nation’s tax laws.
Edun reiterated that “the current VAT rate is 7.5%, and this is what the government charges 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 the laws stipulate.”
He further explained the importance of maintaining a balanced tax system, emphasizing that Nigeria’s tax framework is built on three key pillars: tax policy, tax laws, and tax administration.
While addressing concerns over government actions perceived as anti-human, Edun reassured Nigerians that fiscal policies are designed to promote sustainable economic growth and alleviate poverty, not to hinder them.
The Minister also stated, “Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty, and makes businesses flourish.”