Business Latest

Nigerian Government rakes in N311.94bn from VAT in three months

FG rakes in N311.94bn from VAT in three months

A total of N311.94 billion has been generated by the Federal between April and June 2019 through the Value Added Tax (VAT), statistics from the National Bureau of Statistics (NBS) have shown.

This is an improvement on the N289.04 generated by government in the first quarter of the year, January to March.

NBS revealed that N269.79bn was generated in Q2 2018 representing 7.92 per cent increase Quarter-on-Quarter and 16.95 per cent increase Year-on-Year.

The statistics also showed that manufacturing sector generated the highest amount of VAT with N34.43bn, followed by professional services that generated N29.58bn; and commercial and trading, N16.27bn.

Textile and garment generated a total of N316.91m in VAT; Pharmaceutical generated N250.09m while mining generated the least amount in VAT, N50.6m.

Read also: BUSINESS REVIEW: Different shades of business concerns for Nigeria over the recent FBI fraud convictions

Out of the total VAT value in Q2 2019, N151.56bn was generated as non-import VAT locally, while N94.90bn was generated as non-Import VAT for foreign.

The balance of N65.48bn was generated as NCS-import VAT.

The Federal Inland Revenue Service (FIRS) recently ordered companies to remit value added tax and withholding tax by the 21 of every month in a bid to aide its tax revenue drive, adding that some companies are fond of not deducting taxes at source.

Join the conversation

Opinions

About the author

Timothy Enietan-Matthews

Timothy is a versatile journalist, down to earth with a critical and curious mind.

Do NOT follow this link or you will be banned from the site!