By Dele Ogbodo
The Federal Government has officially debunked reports suggesting that the President Bola Tinubu-led Administration plans to raise Nigeria’s Value-Added Tax (VAT) by additional 2.5%, which is increasing from 7.5% to 10%.
In a statement issued earlier this morning, the Minister of Finance and Coordinating Minister of the Economy Mr. Wale Edun, clarified that there is no such proposal under consideration, emphasising President Tinubu’s commitment to fiscal stability.
Edun, highlighted that the current VAT rate remains unchanged, and that the Federal Government is focused on strengthening the economy through sustainable policies aimed at reducing inflationary pressures without burdening citizens. He also stressed that recent fiscal measures, such as suspensions on import duties for key goods, are part of President Tinubu’s efforts to alleviate economic hardship.
The Ministry, according to Edun, remains committed to transparent communication on all tax and economic policy matters, ensuring that citizens are well-informed and not misled by unfounded reports.
The Minister however assured that any future tax reforms would be announced through official government channels to avoid misinformation.
Also reinforcing the clarification, the Federal Inland Revenue Service (FIRS), added in a separate statement made available to the media, said: “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 the 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.”
The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them, according to FIRS 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, it said.
“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,” Edun said.