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Sunday, June 26, 2022

Nigeria’s VAT Earnings Hit N2.03tn, Grow by N530bn – NBS

Nigeria generated a total of N2.03tn from Value Added Tax (VAT) collections in 2021, data from the National Bureau of Statistics (NBS) have shown.

The revenue generated from VAT in 2021 represents an increase of N530bn when compared to N1.53tn generated in 2020.

According to a report released by the NBS on Friday, the country earned N563.72bn from Value Added Tax in Q4, showing a growth of 12.63 per cent, quarter-on-quarter.

However, on a year-on-year basis, Value Added Tax collections in Q4 2021 increased by 23.98 per cent from Q4 2020, the report added.

In December, The PUNCH had reported that in the first, second, and third quarters of 2021, total Value Added Tax collected were N496.39bn, N512.25bn, and N500.49bn respectively compared to the corresponding figures of last year at N324.58bn, N327.20bn, and N424.71bn respectively.

“This shows higher revenue in the first three quarters of 2021, revealing an improvement in collections.

“On a year-on-year basis, this upsurge shows growth rates of 52.93 per cent in Q1 2021, 56.56 per cent in Q2 2021 and 17.84 per cent in Q3 2021,” the NBS had said.

Looking at the sectoral distribution of local revenue generated over the period, collections from the other manufacturing activity; professional services activity; and state ministries and parastatals accounted for the top three largest shares of revenue in Q1 2021 with N49.41bn (21.97 per cent), N42.5bn (18.9 per cent), and N26.96bn (11.99 per cent) respectively.

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Nevertheless, the NBS added that non-import VAT (local) was N224.85bn, non-import (foreign) VAT amounted to N171.66bn, while NCS-Import VAT stood at N99.88bn.

Similarly, other manufacturing activity; professional services activity; and commercial and trading activity accounted for the top largest collections in Q2 2021 with N44.89bn (23.95 per cent), N29.30bn (15.63 per cent) and N21.96bn (11.71 per cent) respectively.

Non-import VAT local was N187.43bn in Q2, lower than Q1; non- import (foreign) VAT stood at N207.69bn, higher than Q1, while NCS-Import VAT rose to N117.13bn, an improvement from the preceding quarter.

For Q3 2021, NBS data shows that manufacturing activity; Information and Communication Technology activity; and mining & quarrying activity accounted for the top three largest share of total revenue collected sector-wise, representing 30.87 per cent (N91.20bn), 20.05 per cent(N59.25bn) and 9.62per cent (N28.44bn) respectively.

Under the quarter, the bureau said collections of non-import VAT (local) and NCS-Import VAT were higher than the Q2 2021.

For Q4 2021, the NBS said, “In terms of sectoral contributions, the top three largest shares in Q4 2021 were manufacturing with 30.86 per cent; information and communication with 18.72 per cent and mining and quarrying with 9.91 per cent.”


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