The Federal Inland Revenue Service (FIRS) has dismissed reports circulating in some media outlets that the Federal Government intends to increase the Value Added Tax (VAT) rate from 7.5% to 10%.
The FIRS, operating under the Federal Ministry of Finance and established by the FIRS Establishment Act of 2007, is tasked with assessing, collecting, and accounting for tax revenues on behalf of the Nigerian Federation, as well as administering and contributing to the creation of tax laws.
In a statement, Arabinrin Aderonke, Technical Assistant on Broadcast Media to the Executive Chairman of FIRS, clarified: “The Nigerian Government is not proposing any VAT increment. Such reports are false, misleading, and should be disregarded. The Federal Government is not planning to add to the economic burden of Nigerians.”
She emphasized that no discussions regarding VAT increases have taken place between the Federal Ministry of Finance and FIRS, stating, “The Federal Ministry of Finance is responsible for making financial policies, which FIRS then implements. I can authoritatively confirm that FIRS is unaware of any VAT increase proposal, nor is there any pending before the National Assembly.”
Aderonke reassured Nigerians, saying, “There is no cause for alarm. The Federal Government is focused on fixing the economy and improving citizens’ livelihoods. Please disregard any reports suggesting otherwise.”