Mr Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has refuted the reports suggesting an increase in the Valu-Added Tax rate from 7.5 per cent to 10 per cent.

Edun, in a statement on Monday, in Abuja, said that the VAT rate as contained in relevant tax laws and chargeable on goods and services remains 7.5 per cent.

According to him, the current VAT rate is 7.5 per cent  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 the 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,”he said.

The minister also said  that imputation in some media reports on the issue of VAT and the opinion articles that had sprouted from them seem to wrongly convey the impression that the government was out to make life difficult for Nigerians.

“Those reports are 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 per cent and that is what will be charged on all the goods and services that are VAT-able,” he said.

By Editor

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