The Federal Government generated N424.7 billion as Value Added Tax (VAT) in the third quarter of the year (Q3’20). This represents a rise of 30 percent in VAT revenue when compared to N275.12 billion in Q2’20.
The National Bureau of Statistics, NBS, VAT Report for Q3’20 released yesterday also indicated that this is the third consecutive quarterly rise in the VAT revenue occurring throughout the period of the Coronavirus (COVID-10) induced lockdown of commercial activities across in the country.
The Bureau said the “other manufacturing sector” category generated the highest amount of VAT amounting to N47.07 billion while pharmaceutical, soaps & toiletries sector generated the least amount of VAT with N386.2 million.
The report stated: “Sectoral distribution of Value Added Tax (VAT) data for Q3’20 reflected that the sum of N424.71 billion was generated as VAT in Q3’20 as against N327.2 billion generated in Q2’20 and N275.12 billion generated in Q3’19 representing 30 percent increase quarter-on-quarter (QoQ) and 54 percent increase year-on-year (YoY).
“Other Manufacturing generated the highest amount of VAT with N47.07 billion generated and closely followed by Professional Services generating N44.01 billion, Commercial and Trading generating N21.2 billion while Mining generated the least and closely followed by Textile and Garment Industry and Pharmaceutical, Soaps & Toiletries with N64.5 million, N346.27 million and N386.16 million generated respectively.
“Out of the total amount generated in Q3 ’20, N214.7 billion was generated as Non-Import VAT locally while N115.34 billion was generated as Non-Import VAT for foreign. The balance of N94.70 billion was generated as Nigerian Custom Service (NCS)-Import VAT.”