Government’s VAT revenue rises to N298 billion
The Federal Government has recorded N298.01 billion as Value Added Tax in the fourth quarter (Q4) of 2018, against N273.5 billion in the third quarter and N266.73 billion in the corresponding period of 2017.
The National Bureau of Statistics, which made the disclosure in its latest report, also noted that the country collected aggregate N1.11 trillion from VAT in 2018, made up of N269.79 billion in Q1; N266.73 billion, Q2; N273.5 billion, Q3; and N298.01 billion in Q4.
The N31.28 billion quarter-on-quarter difference represents 8.96% rise in the review period above the third quarter and 17.28% in the last one year.
The development shows that government’s tax deepening with the VAT, through the Federal Inland Revenue Service is currently yielding results, although at slow pace, considering the opportunities inherent in the segment.
Currently, VAT rate at five per cent has attracted criticisms, with calls from multinational institutions for an increase to 10 per cent, especially in the midst of the ongoing fiscal crisis.
Sectoral distribution of VAT in Q4 2018, Other Manufacturing generated the highest amount of VAT, with N28.82 billion generated and followed by Professional Services and Commercial and Trading at N24.12 billion and N16.02 billion respectively.
Activities in the Mining sector generated the least and closely followed by Pharmaceutical, Soaps & Toiletries and Chemical, Paints and Allied Industries, which added N35.75 million, N209.33 million and N258.39 million respectively.
Out of the total amounted generated in Q4 2018, N138.42 billion came from Non-Import VAT locally, while N47.89 billion was from Non-Import VAT for foreign, while the balance of N111.71 billion was from the Nigeria Customs Service-Import VAT.
Other sectors that contributed meaningfully to VAT pool in the period under review include Breweries, bottling and beverages at N9.78 billion; government’s ministries and parastatals at N4.86 billion; banks and financial institutions, N3.9 billion; and building and construction, N2.57 billion.