Wale Edun, Minister of Finance and Coordinating Minister of the Economy, has refuted reports of an increase in Value Added Tax (VAT) from 7.5 per cent to 10 per cent, which may be a rare truth (for now) coming out of the Bola Tinubu state capture regime generally known for using lies, propaganda, and galighting as tools of governance.
In a statement signed and released on Monday, the minister insisted VAT rate remains the same at 7.4 percent.
Tinubu – the President and Petroleum Minister – has manipulated the system to ensure he, his family members, and cronies now dominate the Nigerian oil industry, and his merciless regime last week raised fuel pump price from N617 per litre to 897 per litre, which in turn hiked transport costs countrywide to further stoke up the prices of goods and services, including food inflation already at more than 40 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,” he said.
News of VAT rise broke at the weekend, which prompted former Vice President Atiku Abubakar to lambast Tinubu on X (Twitter) for keeping other citizens down in penury and over-taxing them to fund his extravagant and wasteful spending.
However, Edun explained today that “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.
“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.”
