FG Denies Reports of VAT Increase from 7.5% to 10%

The Federal Government of Nigeria has dismissed rumors about a planned increase in the Value-Added Tax (VAT) from 7.5% to 10%.

The Federal Inland Revenue Service (FIRS), operating under the Federal Ministry of Finance, is responsible for tax collection and ensuring compliance with tax laws on behalf of the Nigerian government.

During an interview on Bloomberg Television at the World Economic Forum (WEF) in Davos, Switzerland, Finance Minister and Coordinating Minister of the Economy, Wale Edun, clarified that the current VAT rate remains unchanged.

“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 on Monday, September 9.

Edun emphasized that the Federal Government and its agencies will adhere strictly to existing tax laws and regulations. He described the tax system as being built on a “tripod” of tax policy, laws, and administration.

“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,” Edun said, addressing concerns over the alleged VAT hike.

He assured that the government’s focus is on using fiscal policy to drive sustainable economic growth and reduce poverty, not to create hardships for Nigerians.

Furthermore, Edun highlighted recent measures taken to alleviate economic pressure, including the suspension of import duties, tariffs, and taxes on essential food items such as rice, wheat, and beans.

“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.

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