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Just In:FG Releases Fresh Update on VAT
Just In:FG Releases Fresh Update on VAT
The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, has denied reports that the federal government has increased the rate for Value-Added Tax (VAT) from 7.5% to 10%.
The Minister gave the clarification in a statement on Monday, 9th September.
Edun submitted that the federal government as well as any of its agencies, would not go contrary to relevant tax laws, and according to the operating laws, VAT rate chargeable on goods and services remains 7.5%.
He added that rather than increase taxes, the government recently ordered the stoppage of import duties, tariffs and taxes on rice, wheat, beans and other food items as a way of bringing relief to Naijanews reports.
“The current VAT rate is 7.5% and this is what 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 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 to 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 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.
“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 .
