Breaking News: Nigeria’s Minister of Finance Wale Edun has debunked rumors making rounds that the Federal Government has raised Value Added Tax (VAT) to 10% from 7.5%.
The Minister issued a statement on Monday, September 9 saying VAT still remains 7.5% and various contrary figures quoted on social media were not correct.
In the Minister’s words made available to 9am News Nigeria he said “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. 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”.
Rumor On VAT On Social Media
Rumors that VAT has been increased to 10% has circulated on social and mainstream media triggering fierce backlash from Nigerians who believe that the country is already grappling with an unforgiving inflation and hence it would be unconscionable to tax Nigerians further through raising VAT which would consequently lead to a rise in the prices of most commodities including food items.
Clarifying further the Minister said Nigeria does not operate a punitive tax policy and that tax laws will not be made to overburden Nigerians.
“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,” Minister Wale Edun noted.
“Reports that VAT has been reviewed upwards 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” He concluded.
He also reminded Nigerians that the Federal Government had recently suspended taxes on imported food items as a necessary measure to reduce the cost of food items in the markets and bring relief to Nigerians.
However markets survey carried out by Ogasabi of 9am News Nigeria show there has been no drop in the prices of food items since the suspension of import-duties on imported food was implemented. Infact there has been a slight rise in the prices of some food items such as beans and others.
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