Contrary to speculations that the Value Added Tax (VAT) would be increased to 10 percent, the Federal Government has declared that the VAT remains 7.5% on all VAT-able goods and services.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made the declaration on Monday in a statement by the Director, Information and Public Relations of the Ministry, Mr. Mohammed Manga.
TheFact Daily recalls that the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, during his recent interview on Channels Television Politics Today, disclosed that the committee was proposing a law to the National Assembly to increase Value Added Tax from the current 7.5% to 10% from next year.
Reacting to this on Sunday, September 8, 2024, the former Vice President, Atiku Abubakar warned that the plan by the federal government to increase the VAT from the 7.5 percent to 10 percent would deepen the domestic cost-of-living crisis and Nigeria’s already fragile economic growth.
Atiku lamented that President Bola Tinubu, alongside his coterie of advisers, have resolved to raise the VAT even as the Nigerian National Petroleum Company Limited (NNPC Ltd) has announced a soaring petrol price increase at the pump.
He contended that the relentless rise in taxes and interest rates has proven excessively onerous, debilitating businesses of all sizes and leading to job losses while intensifying the suffering of the poor.
However, the Minister clarified that there was no such proposal under consideration, emphasising President Tinubu’s commitment to fiscal stability.
Edun highlighted that the current VAT rate remains unchanged and that the Federal Government is focused on strengthening the economy through sustainable policies aimed at reducing inflationary pressures without burdening citizens.
He also stressed that recent fiscal measures, such as suspensions on import duties for key goods, are part of President Tinubu’s efforts to alleviate economic hardship.
The Minister assured the public that any future tax reforms would be announced through official government channels to avoid misinformation.
