The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has announced plans to increase Value-Added Tax (VAT) to 15%, specifically targeting luxury goods.
This move is part of the federal government’s broader effort to adjust the tax system without burdening the lower-income population.
According to Edun, the increase will apply only to luxury items, ensuring that basic goods and services remain either exempt or subject to a zero rate.
He emphasized that the wealthy will bear the brunt of the VAT hike, while everyday necessities remain unaffected, providing some relief to the majority of Nigerians.
The bill is currently being reviewed by the National Assembly, and its provisions are designed to boost government revenues while protecting lower-income citizens from additional tax pressures.
