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

In a statement signed by him today,Edun clarified that the VAT rate remains unchanged at 7.5 per cent, as stipulated in the nation’s tax laws.

He further explained the importance of maintaining a balanced tax system, emphasising that Nigeria’s tax framework is built on three key pillars- tax policy, tax laws, and tax administration.

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,” the minister said.

Addressing concerns over government actions perceived as burdensome, Edun reassured Nigerians that fiscal policies are designed to promote sustainable economic growth and alleviate poverty, not to hinder them.

Responding to media reports that painted the government as seeking to impose additional hardship on citizens, Edun called the reports inaccurate.

He also highlighted recent government initiatives to ease the financial burden on citizens, particularly regarding food imports.