Nigeria’s Minister of Finance, Wale Edun, on Monday, dismissed reports making the rounds that the rate for Value-Added Tax, VAT, has been adjusted to 10 percent from 7.5 percent.
Edun made this clarification in a statement he signed on Monday,
affirming that the VAT rate as contained in relevant tax laws and chargeable on
goods and services remains at 7.5 percent.
According to him, the focus of the government is to
introduce policies that will improve the lives of Nigerians not impoverish the
citizenry.
He stressed that this is why the government recently
introduced 150 days of zero import duty on staple foods such as rice, wheat,
beans and other food items.
“The current VAT rate is 7.5 percent 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 three must combine well to give us a sound
system that gives vitality to the fiscal position of the federal 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 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.
“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.
“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.
This comes after Taiwo Oyedele, Chairman Presidential Fiscal
Policy and Tax Reforms Committee during a Channels Television interview hinted
at a plan to propose a law to increase VAT to 10 percent from 7.5 percent.
His comment has since sparked criticism.
Former Vice President, Atiku Abubakar, reacting to the
proposal, said it will be an inferno that will consume the very essence of
Nigerian people.
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