JamzNG Latest News, Gist, Entertainment in Nigeria
Minister of Finance and Coordinating Minister for Economic Affairs, Wale Edun, said on Monday that the Federal Government has not increased the Value Added Tax (VAT) to 10%.
Former Vice President Atiku Abubakar on Sunday slammed the planned VAT hike as deliberated by the chairman of the presidential committee on fiscal policy and tax reforms, Taiwo Oyedele.
In his recent presentation to the government, Oyedele stressed the need for an increase in VAT rates.
Atiku described the move as a “regressive and punitive policy” that would increase the cost of living in the country.
Edun who responded to the statement in a statement, clarified that the current VAT rate as stipulated in the country’s tax laws, remains at 7.5%.
He said: “The current VAT rate is 7.5% and this is the rate the government levies on various taxable goods and services.
“Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws provide.”
READ ALSO: Atiku slams Nigerian government’s plan to raise VAT to 10%
The minister said the tax system stands on a tripod that includes tax policy, tax laws and tax administration.
He stressed that the three elements must work together to create a good system that gives vitality to the government’s fiscal position.
He said the government’s focus is on using fiscal policy in a way that promotes sustainable economic growth, alleviates poverty and fosters a thriving business environment.
“The allegations in some media reports on the VAT issue and the opinion articles arising from it appear to wrongly convey the impression that the government is intent on making life difficult for Nigerians.
“That is not true. On the contrary, the federal government has, through its policies, shown that it is committed to creating a supportive environment for businesses to thrive.
“In fact, it is on record that the federal government, as part of its efforts to provide relief to Nigerians and business people, recently ordered the suspension of import duties, tariffs and taxes on rice, wheat, beans and other food items,” the minister concluded.
By: Babajide Okeowo
Nigerian government rules out VAT hike above 7.5% first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.
