Edun debunks claims on VAT Increase
Minister of Finance and Coordinating Minister of the Economy, Wale Edun
Edun debunks claims on VAT Increase
Abdullateef Fowewe
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has refuted the claims that the Federal Government has increased the value-added tax (VAT) to 10 per cent.
Edun, in a statement on Monday, explained that the current VAT rate, as stipulated in the country’s tax laws, remains at 7.5 per cent.
He emphasised that the government is committed to adhering to the legal framework governing taxation, stating that “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 government.
“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.”
The statement came in response to some claims, including by former Vice President Atiku Abubakar, that President Bola Tinubu’s government had concluded plans to raise VAT to 10 per cent.
