Nigeria Earned N1.1trn From VAT In Nine Months – NBS

The country earned a total of N1.1trn from Value Added Tax during the first nine months of this year.

The  NBS disclosed this on Monday in its Sectoral Distribution Of Value Added Tax report.

During the nine month period of 2020 the country generated N324.57bn in the first quarter, N327.2bn in the second quarter and  N424.7bn in the third quarter.

The figure according to the data released by Nigeria’s statistics body for the third quarter shows significant increase of N149.59bn compared to the  N275.12bn recorded in the third quarter of last year when VAT rates was at five per cent.

Against the second quarter of 2020, VAT rose by 29.8 per cent from N327.2bn to N424.7bn in the review quarter.

The Nigerian government had in February implemented the increase of VAT from five per cent to 7.5 per cent.

The increase was to help the government raise its non- oil revenues to help fund its fiscal gap.

NBS said Other manufacturing sector generated the highest amount of VAT with N47.1bn receipts.

 
The report further stated that VAT generated from Professional Services was N44.01bn, while Commercial and Trading generated N21.18bn.

The Nigerian mining sector generated the least VAT, closely followed by textile and garment industry and pharmaceutical, soaps and toiletries with N64.50m, N346.27m and N386.16m respectively.

The bureau further pointed that out of the total amount generated in the third quarter, N214.66bn was generated as Non-Import VAT locally, while N115.34bn was generated as Non-Import VAT for foreign.

Also N94.70bn was generated as Nigerian Custom Service-Import VAT during the third quarter of this year.

On the sectoral distribution of VAT, NBS said Commercial and Trading contributed N52.288bn

Also professional services generated N44bn in VAT in the third quarter of this year, as against the N38.29bn and N37.6bn recorded in the first and second quarters respectively. 

Breweries contributed N40.6bn to the country’s VAT for the first nine months, while Federal Ministries and  Parastatals generated N18.74bn.

 Banks and Financial Institutions contributed N17.4bn in the three quarters of the year with the highest VAT generated in the third quarter at N6.87bn.

The sector had recorded N5.4bn in the first quarter and N5.1bn in the second quarter of this year.