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Nigeria rakes up $2.64 billion on VAT

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Nigeria rakes up $2.64 billion on VAT

The National Bureau of Statistics (NBS) says the revenue generated from the Value Added Tax (VAT) from sectoral distribution from first to third quarters of 2018 was $2.64 billion (N808 billion).

VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.

The sectoral distribution of Value Added Tax for Q2 and Q3, 2018 posted on the bureau’s website showed an increase in the revenue generated from VAT during the year under review.

The figures represented an increase of 2.54 per cent quarter-on-quarter, and 9.16 per cent increase year-on-year.

The report showed that the manufacturing sector generated the highest amount of VAT with N31.48 billion generated.

This, it said, was closely followed by Professional Services and Commercial and Trading, both generating N25.57 billion and N15.99 billion respectively.

It further stated that the mining sector generated the least and was closely followed by Pharmaceutical, soaps and toiletries and textile and automobiles and assemblies with N52.70 million, N177.34 million and N265.35 million respectively.

In addition, it stated that out of the total amount generated in the third quarter of the year under review, N128.62 billion was generated as Non-Import VAT locally, while N58.84 billion was generated as Non-Import VAT for foreign.

The report, however, noted that the balance of N86.04 billion was generated as Nigeria-Customs import VAT in the year.

– APA

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