The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, denied claims that the federal government had increased the Value-Added Tax rate from 7.5 per cent to 10 per cent.
The minister’s denial was contained in a statement signed on Monday explaining that the current VAT rate remains unchanged at 7.5 per cent, as stipulated in the country’s tax law.
He explained that the VAT tax rate been charged in the country presently is 7.5% for the goods and services that are tax applicable in the country.
The minister in his explanation noted that it was important to maintain a balanced tax system law in the country. He also emphasised that the tax framework of the country is built on three key pillars- tax policy, tax laws, and tax administration.
He noted that the tripod should always be combined to provide a system that gives vitality to the fiscal position of the government.
The minister also addressed concerns raised because of the government’s actions, which have been seen as burdensome. He noted that the Nigerian government’s fiscal policies have been designed to promote sustainable economic growth and alleviate poverty.
He further stated that the policies will also help the growth of business in the country rather than what the people have perceived.
The minister criticized various media reports that the government, through its policies, was out to impose further hardship on the people.
Edun noted that the government and its policies have taken seriously the need for the growth of businesses in the country. He explained that opinion articles published in the media do not demonstrate what the government is doing.
The minister noted that some of the recent policies by the government were aimed at alleviating the suffering of the people and improving the performance of business in the country.
He listed some of the initiatives as the stoppage of import duties, tariffs, and taxes on rice, wheat, beans, and other food items.
