FG Says VAT On Goods Remains, No Increment

By Ayodele Oni

The Federal Government has clarified that as of today, the Value Added Tax, (VAT) remains 7.5 percent on all the goods and services that are “VAT-able.”

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, was reacting on Monday, to report that government has increased VAT on goods.

The minister debunked reports doing the rounds that the rate for Value-Added Tax (VAT) has been upwardly adjusted to 10 per cent from 7.5 per cent.

Former vice president, Atiku Abubakar had on Sunday warned that any attempt to jerk up VAT would spur Nigerians to protest.

The Minister, in a statement signed by him, on Monday affirmed that the VAT rate as contained in relevant tax laws and chargeable on goods and services remains at 7.5 per cent.

“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.

“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 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.

“In fact, 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.”