VAT Revenue Increases by 8.45 percent in H1, 2020

FG Considers Out-of-court Settlement Over Collection Of VAT

Revenue generated from value-added tax increased by 8.45 percent from the ₦600.9 billion realised in half-year 2019 to ₦651.7 billion in 2020.

According to the sectoral distribution on value-added tax report released by the National Bureau of Statistics (NBS) on Monday, the total revenue was generated from 28 sectors of the economy.

“Sectoral distribution of value-added tax (VAT) data for H1’2020 reflected that the sum of ₦651.77 billion was generated as VAT in H1’ 2020 as against N600.98 billion n generated in the first half of 2019 (H1’2019)” the report read.

“This represents 8.45 percent growth year-on-year (YoY).”

Professional services generated the highest with ₦75.92 billion generated, followed by other manufacturing (₦67.63 billion); commercial and trading (₦31.10 billion); breweries, bottling and beverages (₦24.76 billion); and states ministries and parastatals (₦22.50 billion).

Mining generated the least amount with ₦127.57 million.

Other sectors that were ranked in the nether end were textile and garment industry (₦499.18 million); pharmaceutical, soaps and toiletries (₦648.77 million); local government councils (₦802.38 million); and publishing, printing, paper packaging (₦884.34 million).

According to the report, ₦335.82 billion was generated as non-import VAT locally while ₦161.74 billion was generated as non-import VAT for foreign while the balance of ₦154.21 billion was generated as Nigeria Custom Service-import VAT.

Nigeria began implementation of the 7.5 percent VAT, which was part of the tax amendments made in the 2019 finance act, in February 2020.

Source: The Cable

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