On Monday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, dismissed rumors claiming that the value-added tax (VAT) rate had been increased from 7.5% to 10%. In a statement personally signed by the minister, he clarified that the VAT rate remains at 7.5% as specified by existing tax laws.

“The current VAT rate is 7.5%, and this is the rate applied to goods and services as per the law. Neither the Federal Government nor any of its agencies will act against these established regulations,” Edun stated.

He emphasized that a solid tax system relies on three pillars: tax policy, tax laws, and tax administration. According to him, the government's priority is to use fiscal policy to foster sustainable economic growth, reduce poverty, and encourage business development.

Edun also addressed media reports suggesting that the government’s tax policies are designed to burden Nigerians, calling such claims inaccurate. He pointed out that the government has actively taken steps to ease the financial strain on citizens, including the recent suspension of import duties, tariffs, and taxes on essential food items like rice, wheat, and beans.

“For clarity, as of today, VAT remains 7.5%, and that is the rate applied to all VAT-able goods and services,” Edun reiterated.