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FG’s VAT on imports drops N3.58bn in Q1 2018

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FG's VAT on import drops N3.58bn in Q1 2018

A recent data by the National Bureau of Statistics (NBS) has shown that the Value Added Tax (VAT) generated by the Federal Government through the Nigerian Customs Service (NSC) on imported items dropped by N3.58 billion in the first quarter of 2018.

The Bureau, in its report on “Sectorial Distribution of Value Added Tax” released on its website on Thursday, said the VAT on imports, which was N53.57bn in Q4 2017, reduced by 7.73 per cent to N50bn.

But, when compared to the amount generated in Q1 2017, it rose by 6.68 per cent from N46.41bn.

The Federal Government had announced its plan to commence the implementation of the 2017 Revised Import and Export Guidelines which mandates both imports and exports to being palletised in containers in January 1, 2018.

This, according to Finance Minister Kemi Adeosun, is in line with global standards and part of the government’s policies to enhance the ease of doing business in the country.

This appears to have impacted negatively on VAT revenue generation of the country through imports.

However, the total amount generated through VAT increased to N269.79 billion naira in Q1 2018 as against N254.10 billion generated in previous quarter and N221.38 billion in the period in 2017.

The amount, according to NBS, represents 6.17 per cent increase on Quarter-to-Quarter (QoQ) basis and 21.87 per cent increase on Year-on-Year (YoY) basis.

Read also: FG launches online portal for investors, targets first 100 in Ease of Doing Business ranking

Other Manufacturing, Professional Services, Commercial and Trading, States Ministries and Parastatals and Breweries, Bottling and Beverages in the local non-import VAT generated the highest amount of VAT of N30.14bn, N16.58bn, N14.94bn, N11.88bn and N8.88bn respectively.

On the other hand, Minning, Pharmaceuticals, Soaps and Toiletries, Textile and Garment Industry, Publishing, Printing, Paper Packaging and Agricultural and Plantations also in the local non-import VAT recorded the least amount of VAT of N46.25m, N243.44m, N285.43m, N339.61m and N372.57m respectively.

The foriegn non-import VAT rose by 23.87 per cent QoQ and 103.60 per cent YoY to N98.40bn.

By Oluwasegun Olakoyenikan…

 

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