NBS: VAT revenue increased by N171bn in one year

The National Bureau of Statistics (NBS) says the country’s revenue from value-added tax (VAT) increased by N171.81 billion in one year.

According to the recently released sectoral value-added tax (Q1 2021) report, N496.39 billion was generated in the first quarter of 2021 (Q1 2021), as against N324.58 billion in Q1 2020, representing a 52.93 percent increase year-on-year.

A sum of N454.69 billion was recorded in Q4 2020, amounting to a 9.17 percent increase quarter-on-quarter.

The manufacturing sector generated the highest amount of VAT with N49.41 billion recorded while professional services, state ministries and parastatals generated N42.50 billion and N26.96 billion, respectively.

Sectors that generated the lowest VAT during the period under review include: mining (N48.36 million); pioneering (N77.01 million); textile and garment industry (N289.41 million).

Out of the total amount generated in Q1 2021, N224.85 billion was generated as non-import VAT locally, while N171.66 billion was generated as non-import VAT for foreign, while the balance of N99.88 billion was generated as Nigeria Customs Service (NCS) import VAT.

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

Revenue generated from VAT is usually disbursed to the three tiers of government through the federation accounts allocation committee (FAAC).

The 7.5 percent VAT rate became effective on February 1, 2020.