No Plan to Increase VAT, Says FG

Ndubuisi Francis in Abuja 

The Federal Government has denied reports of a planned hike in Value Added Tax (VAT) from the current 7.5 per cent rate to 10 per cent.

The rebuttal was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who stated that

“there is no such proposal under consideration”.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, had during a recent television interview revealed that his committee had proposed a 2.5 per cent increase in VAT, from 7.5 per cent to 10 per cent by 2025, subject to the approval of the National Assembly.

The minister’s rebuttal followed Sunday’s reactions by former Vice-President Atiku Abubakar, other individuals and groups condemning any move to increase VAT.

Edun, in a statement issued by the Director, Information and Public Relations, Federal Ministry of Finance, Mohammed Manga, explained that the current VAT remains unchanged.

The statement read: “The Federal Government has officially debunked reports suggesting that the President Bola Ahmed Tinubu-led Administration plans to raise Nigeria’s Value-Added Tax (VAT) from 7.5% to 10%.”

“In a statement issued earlier today [Monday] morning, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, clarified that there is no such proposal under consideration, emphasising President Tinubu’s commitment to fiscal stability.

“HM Edun highlighted that the current VAT rate remains unchanged, and that the Federal Government is focused on strengthening the economy through sustainable policies aimed at reducing inflationary pressures without burdening citizens. 

“He also stressed that recent fiscal measures, such as suspensions on import duties for key goods, are part of President Tinubu’s efforts to alleviate economic hardship.

“The Federal Ministry of Finance remains committed to transparent communication on all tax and economic policy matters, ensuring that citizens are well-informed and not misled by unfounded reports. 

“The minister assured the public that any future tax reforms would be announced through official government channels to avoid misinformation.”