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The Federal Government has debunked widespread reports suggesting an imminent increase in the Value-Added Tax (VAT) from 7.5% to 10%.
Finance Minister and Coordinating Minister of the Economy, Mr Wale Edun, categorically denied these claims in a statement on Monday, September 9.
Edun emphasised that the current VAT rate of 7.5% remains unchanged and is in line with existing tax laws.
"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," Edun stated.
He stressed that neither the Federal Government nor its agencies would act against stipulated laws.
The Minister outlined the structure of the tax system, describing it as standing on a "tripod" of tax policy, laws, and administration.
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He highlighted that the government is focused on using fiscal policy to promote sustainable economic growth and reduce poverty rather than creating hardship for Nigerians, as some reports suggest.
Addressing concerns over the purported VAT hike, Edun said, "The imputation in some media reports wrongly conveys the impression that the government is out to make life difficult for Nigerians. That is not correct."
In addition to this clarification, Edun pointed out that the Federal Government recently suspended import duties, tariffs, and taxes on essential food items like rice, wheat, and beans to alleviate economic pressure on citizens and businesses.
"For emphasis, as of today, VAT remains 7.5%, and that is what will be charged on all VAT-able goods and services," he concluded.