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Why Nigeria generated 1.5% lower VAT in 2017 Q1 –NBS

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Why Nigeria generated 1.5% lower VAT in 2017 Q1 –NBS

Nigeria failed to improve on its Value Added Tax (VAT) revenue in the first quarter of 2017 as it recorded N204.77 billion, 1.5 per cent lower than the N207.35 billion it did in the fourth quarter of 2016.

This was because of inability of the economy to display the anticipated exit from recession in the first quarter.

According to the National Bureau of Statistics (NBS), the first quarter of 2017 saw consumption tax of total amount generated being N126.64 billion, which is for non-import VAT for locally manufactured goods.

Read also: High interest rates killing investors’ interest in Nigeria –Saraki

High inflation and unemployment rates were the two factors that played some negative roles in VAT performance in the 2016 and first quarter of 2017, in particular.

In the first quarter of 2016, the bureau said manufacturing sector generated the highest amount of VAT, with N28.73 billion, while other general services shared the balance, VAT being consumer-oriented taxation.

It further stated that the manufacturing sector was closely followed by professional services and commercial and trading, both generating N20.82 billion and N12.89 billion respectively.

The bureau stated that mining generated the least, and was closely followed by local government councils and textile and garment industry with N35.07 million, N99.84 million and N230.89 million respectively.

 

 

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