In a statement released today, Minister Edun emphasized the government’s commitment to maintaining the current VAT rate as stipulated by existing tax laws. “The current VAT rate is 7.5% and will continue to be charged on all applicable goods and services.
This clarification comes in the wake of impressive VAT revenue figures for the second quarter of 2024.
This growth underscores the effectiveness of the government’s fiscal policies and its focus on sustainable economic development.
The NBS report highlighted that local VAT payments amounted to N792.58 billion, foreign VAT payments contributed N395.74 billion, and import VAT added N372.95 billion.
Minister Edun also reiterated the government’s dedication to using fiscal policy to foster economic growth, reduce poverty, and support business development. Recent measures, such as the suspension of import duties, tariffs, and taxes on essential food items like rice, wheat, and beans, reflect this commitment.
The Federal Government remains focused on creating a stable and predictable tax environment to encourage investment and economic growth. The clarification on the VAT rate aims to dispel any uncertainties and reaffirm the government’s adherence to established tax policies.