Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has confirmed plans by the Federal Government to raise Value Added Tax, VAT, to 15 percent.

 

However, the minister explained that only luxury goods consumed by the rich would be affected.

Edun made the disclosure in an investor meeting at the ongoing IMF/World Bank Annual Meetings in Washington DC, in the United States..

According to him, a bill to this effect is being worked on in the National Assembly.

The bill, he said, aims to gradually raise VAT on luxury goods, adding that essential items consumed by poorer and vulnerable Nigerians would be protected and not be affected by the VAT.

“In terms of VAT, President Bola Tinubu’s commitment is that while implementing difficult and wide-ranging but necessary reforms, the poorest and most vulnerable will be protected,” the minister said.

“So, the bills going through the National Assembly in terms of VAT will raise VAT for the wealthy on luxury goods, while at the same time exempting or applying a zero rate to essentials that the poor and average citizens purchase.”

Edun promised the public would soon get the list of essential goods exempted from VAT.