Value Added Tax generated from the construction and real estate sector rose by 124 percent from N10bn in 2018 to N22.45bn in 2022.
An analysis of the National Bureau of Statistics’ quarterly VAT report showed that the sector also generated a total of N70bn within the period under review.
According to the report, VAT is a consumption tax paid when goods are purchased and services rendered. It is a multi-stage tax, is borne by the final consumer, and is charged at a rate of 7.5 percent.
The NBS stated that revenue generated from VAT is usually disbursed to the three tiers of government through the Federation Accounts Allocation Committee.
A review of 17 documents obtained from the National Bureau of Statistics showed that the VAT country generated from the construction and real estate sector was N10bn in 2018 and N10.17bn in 2019.
In 2020 it amounted to N11.38bn, N15.89bn in 2021, and N22.45bn in 2022.
Nigeria’s VAT revenue has grown significantly in recent years, following the increment of the VAT rate from 5 percent to 7.5 percent in 2020.