Nigeria Earned ₦512.25bn

Nigeria Earned ₦512.25bn – The Nigerian Government generated the sum of N512.25 billion from Value Added Tax (VAT). The National Bureau of Statistics (NBS) disclosed this on Tuesday.
According to the NBS, sectoral distribution of Value Added Tax (VAT) data for Q2 2021 reflected that the sum of N512.25bn was generated as VAT in Q2 2021 as against N496.39bn generated in Q1 2021 and N327.20bn generated in Q2 2020 representing a 3.20% increase Quarter-on-Quarter and 56.56% increase Year-on-Year.

Other Manufacturing generated the highest amount of VAT with N44.89bn generated and closely followed by Professional Services generating N29.30bn, Commercial and Trading generating N21.96bn while Textile and Garment industry generated the least and closely followed by Pioneering and Pharmaceutical, Soaps and Toiletries with N77.74m, N169m and N188.71m generated respectively.

Out of the total amount generated in Q2 2021, N187.43bn was generated as Non-Import VAT locally while N207.69bn was generated as Non-Import VAT for foreign. The balance of N117.13bn was generated as NCS-Import VAT.

The NBS latest report showed that the VAT generated in Q2 2021 surged by 56.56 percent compared to the N327.20 billion recorded in the corresponding quarter in 2020.

N496.39 billion was generated from VAT in Q1 2021.

N512.25bn Generated as VAT in Q2 2021, Increases by 3.20% QoQ - NBS
Nigeria Earned ₦512.25bn

“Out of the total amount generated in Q2 2021, N187.43bn was generated as Non-Import VAT locally while N207.69bn was generated as Non-Import VAT for foreign,” the report reads.

“The balance of N117.13bn was generated as NCS-Import VAT.”

The sectors that generated the highest VAT in Q2 2021 include: Other manufacturing (N44.89 billion); professional services (N29.30 billion); commercial and trading (N21.96 billion); state ministries and parastatals (N18.41 billion); and transport and haulage services (N13.99 billion).

Meanwhile, the textile and garment industry generated the least VAT in the quarter in view with N77.74 million.

This was followed by pioneering; pharmaceutical, soaps, and toiletries; chemicals, paints and allied industries; and local government councils with N168.99 million, N188.71 million, N281.04 million, and N399.91 million generated respectively.

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

Nigeria had raised its VAT rate from 5 percent to 7.5 percent in 2020, however, the International Monetary Fund (IMF) advised that the rate should be increased to at least 10 percent by 2022.

The IMF also advised Nigeria to increase the VAT rate to 15 percent by 2025.