EoDB: Nigeria retains VAT at 7.5 percent for sustainable economic growth, business development ─Minister

*Olawale Edun, Minister for Finance and Coordinating Minister of the Economy, reaffirms the rate of Value-Added Tax on goods and services remains 7.5 percent, stating the Nigerian Government’s focus is to apply fiscal policy that enhances strong and sustainable economic growth to make businesses flourish

Isola Moses | ConsumerConnect

The Federal Government has clarified certain media reports in the public space about alleged upward review of the Value-Added Tax (VAT) to 10 percent.

Mr. Olawale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy, who made the clarification in a statement Monday, September 9, 2024, said the VAT rate on VAT-able goods and services remains 7.5 percent in the Nigerian economy.

Ẹdun also affirmed that the VAT rate, as stipulated in relevant tax laws and chargeable on goods and services is at 7.5 percent in the country.

Edun stated: “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 Minister also noted: “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.”

He further said: “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 seem to wrongly convey the impression that the government is out to make life difficult for Nigerians.”

The Minister asserted: “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.”

Edun restated: “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.”