Taiwo Oyedele, Chairman of the Presidential Committee on Tax Reforms, has clarified that his committee’s proposal was for the complete removal of Value Added Tax (VAT) on certain items, not a 10% increase. This follows confusion arising from reports that misinterpreted his committee’s recommendations.
In a statement issued on Tuesday, Oyedele addressed inaccurate reports suggesting a 10% VAT increase. He emphasized that the committee proposed eliminating VAT on essential items such as house rents, food, and public transportation, while recommending tax cuts for employers providing transportation services and for those who hire additional staff.
Oyedele expressed regret over the misrepresentation of his statements and criticized the sensationalism in some media reports. He noted, “The same interview, very different reportage and choices of headlines. Bad news sells faster, so some journalists will spin any news just to sell. Some of the quotes attributed to me in some of the reports are not my words.”
The committee’s actual proposal includes reducing VAT to zero percent for food, health, education, and exempting rent, transportation, and small businesses. The recommendation also suggests an adjustment of VAT rates on other items to balance the revenue impact and protect the average consumer.
Oyedele clarified that the aim of the proposal is to alleviate the VAT burden on essential expenditures while adjusting rates on non-essential items to offset the revenue loss and safeguard the interests of the general public.
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