VICTORIA ONU, ABUJA
BETWEEN January and September this year, Nigeria generated a total of N1.1trn from Value Added Tax.
The figure, which was released on Monday by the National Bureau of Statistics, was generated by the Federal Inland Revenue Service.
The NBS in its Sectoral VAT Report stated that during the nine months 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 increase in VAT revenue was made possible as a result of the February hike in VAT, from five per cent to 7.5 per cent.
The increase was to help the Federal Government raise its non-oil revenues to help fund its fiscal gap, The Point reports.
The 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.
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.
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.
