Monday, 6th December 2021
<To guardian.ng
Search
Breaking News:

VAT slumped by N4.6b in October as FG, states, LGs share N672b 

By Geoff Iyatse
18 November 2021   |   3:01 am
A total of N671.9 billion is available to be shared by the three tiers of government in November, the Technical Sub-Committee of the Federation Account Allocation Committee (FAAC)

Gross statutory earnings fell by 41%

A total of N671.9 billion is available to be shared by the three tiers of government in November, the Technical Sub-Committee of the Federation Account Allocation Committee (FAAC) disclosed at the end of its meeting in Lagos.

   
The amount earned in October is N67.1 billion or nine per cent less than the N739. 97 billion distributable revenue for the previous month.
  
According to the summary of the account obtained by The Guardian, there was a marginal and considerable decline in revenues from Value Added Tax (VAT) Petroleum Profit Tax (PPT), Oil and Gas Royalties as well as Company Income Tax (CIT), while import and excise duties increased slightly. 
   
VAT, for instance, declined marginally from N170.85 billion earned in September to N166.28 billion in October, recording a shortfall of 2.7 per cent or N4.57 billion.
   
In October, the gross statutory earning was N407.86 billion, as against N692.28 billion earned in September, which puts the shortfall at 284.42 billion. The growth of gross statutory revenue in October was -41 per cent.
  
“The gross statutory revenue of N407.864 billion received for the month was lower than N692.283 billion received in the previous month by N284.419 billion. Petroleum Profit Tax (PPT), Oil and Gas Royalties and Companies Income Tax (CIT) decreased considerably. Also, there was a slight decline in VAT, whereas import and excise duty increased marginally. 
    
“The Distributable Statutory Revenue for the month is N363.849 billion, VAT is N154.844 billion and Exchange Gain is N3.217 billion. There were augmentations of N100 billion and N50 billion from non-mineral revenue, bringing the total distributable revenue to N671.910 billion,” the committee noted in the comment section.
   
Details of the report estimated the total gross revenue at N727.37 billion with costs of collection and add back (transfers/refunds) accounting for N56.46 billion, an equivalent of 7.8 per cent of the gross figure.
   
A breakdown of the November allocation puts the Federal Government’s share at N284.29 billion, while the states are entitled to N209.84 billion. The 774 local councils take N156.28 billion. The 13 per cent derivation takes slightly below N21.5 billion.