The Federal Government has announced its market surveillance efforts to ensure that the benefits of the recent Value Added Tax (VAT) reduction are passed on to consumers. The reduction in VAT from 17 to 13 percent, which took effect on Jan. 1^st 2025, was designed to ease financial burdens and enhance affordability for households across the Federation.

A preliminary market assessment conducted by the Consumer Affairs Department has shown encouraging results, with several retailers reflecting reduced prices across various product categories. The findings indicate that prices of standing and ceiling fans have seen an average reduction of 3.5 percent, while air conditioners have decreased by approximately 3.4 percent. Additionally, steel bars, a key construction material, have seen an average price drop of 14 percent, according to a release from the Government.

Although several major retailers have adjusted their pricing structures to reflect the lower VAT rate, the Consumer Affairs Department will continue its routine monitoring to ensure that savings are being fully transferred to consumers.

Consumers are urged to remain vigilant, report discrepancies, and support businesses that uphold fair pricing practices.