Edun added that the FG recently introduced 150 days of zero import duty on staple foods such as rice, wheat and others
By Kehinde Okeowo
Minister of Finance, Wale Edun has dismissed reports making the rounds that the rate for Value-Added Tax (VAT) has been adjusted to 10 percent from 7.5 per cent, insisting the President Bola Tinubu-led government is focused only on policies that will alleviate sufferings of Nigerians.
He made this known 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 per cent.
The minister’s statement comes after the Chairman Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele hinted at a plan to propose a law to increase VAT to 10 per cent from 7.5 per cent while featuring on a programme on Channels Television recently.
His comment has since sparked criticism with former Vice President, Atiku Abubakar, also condemning the move.
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Apparently in a bid to douse tension, Edun denied FG is planning such, insisting the focus of the government is to introduce policies that will improve the lives of Nigerians not impoverish the citizenry.
He went on to stress 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.
Speaking via the statement, Edun said,
“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.”
