Wale Edun, Nigeria’s minister of finance and coordinating minister of the economy, has refuted claims that the government reviewed the country’s Valued Added Tax (VAT) to 10 percent.
“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,” Edun said.
“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,” he added.
The statement was made on the backdrop of reports revealing that the President Bola Tinubu administration is planning to raise VAT to 10 percent, thereby compounding the woes of many Nigerians who are grappling with rising prices of food and energy.
The finance minister said Nigeria’s tax system stands on a tripod, namely tax policy, tax laws, and tax administration, noting that all the three must combine well to give vitality to the fiscal position of the government.
The coordinating minister of the economy also said the reports making the rounds on a purported upward review of VAT “seem to wrongly convey the impression that the government is out to make life difficult for Nigerians”.
Reacting to the rumours, Atiku Abubakar, former vice president and the presidential candidate of the Peoples Democratic Party (PDP) in the 2023 presidential election said the move, if actualized, would add to the burden Nigerians currently face.
“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished while steadfastly ignoring their extravagant excesses! Tinubu’s actions reflect a profound insensitivity to the plight of the less fortunate as he indulges in the opulent renovation of villas and the acquisition of new jets and vehicles for himself and his family,” Atiku said from his X handle (formally known as Twitter).
“Tinubu has never and will never offer anything positive to the people of Nigeria. When we were saying it in 2023, they brought in tribalism and religion. All things are falling apart. Will the center ever hold? Come 2027, we will still choose the best candidate and watch them do whatever they like,” Evaristus said on his X handle.
Tobi Akinbo said on his X handle that “FIRS has also directed Fintech companies to charge a N50 naira levy on transfers above N10,000. This is a plot to further extort the poor masses. It’s criminal and illegal”.
