Market News

By Ogaga Ariemu

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.