Money

FG earns N424.7 billion from VAT

VAT

By Philip Clement

The federal government has generated N424.71 billion from Value Added Tax (VAT) in the thirdquarter of 2020 (Q3 2020).

It represents an increase of 29.80 per cent from N327.20 billion in the second quarter of 2020 (Q2 2020) quarter-on-quarter (QoQ).

This was contained in the sectoral distribution of Value Added Tax for Q3 2020 report released on Mond by the Nigerian Bureau of Statistics (NBS).

According to the report, VAT generated in Q3 2020 increased by 54.37 per cent against Q3 2019 (N275.12 billion) year-on-year (YoY).

The sectors that generated the highest VAT in Q3 2020 include other manufacturing (N47.074 billion); professional services (N44.013 billion); commercial and trading (N21.183 billion); state ministries and parastatals (N19.641 billion); and breweries, bottling and beverages (N15.836 billion).

Meanwhile, the sectors that generated the lowest VAT in Q3 2020 include Mining (N64.500 million); textile and garment industry (N346.269 million); pharmaceuticals, soaps and toiletries (N386.161 million); publishing, printing, paper packaging (N473.095 million); and local government councils (N567.973 million).

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Out of the total amount generated in Q3 2020 as VAT, N216.662 billion was generated as non-import VAT locally, N115.344 billion as non-import VAT foreign, while N94.701 billion was generated as Nigeria Customs Service-import (NCS-import) VAT.

VAT is a consumption tax which is administered by the Federal Inland Revenue Service (FIRS).

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Ihesiulo Grace

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