FG's revenue from VAT grew by 29.7% to N1.53trn in 2020

The federal government of Nigeria has significantly increased revenue generated from Value Added Tax (VAT) in 2020 by 29.66 per cent to N1.53trn, against N1.18 trillion recorded in 2019, latest figures from Nigeria Bureau of Statistic (NBS) revealed.

Although, when considering the NBS latest figures on Quarter-on-Quarter basis, the VAT only increased by 7.06 per cent to N29.98 billion from N424.71 billion generated in the third quarter of 2020 to N454.69 billion in the last quarter of the year under review.

The breakdown of the NBS latest report titled, ‘Sectoral distribution of Value Added Tax (Q4 2020)’ showed that professional services generated the highest amount of VAT with N42.38 billion generated and closely followed by manufacturing generating N39.45 billion, while commercial and trading generated N21.15 billion.

Also, the pharmaceuticals, soaps and toiletries raked in N370.32 million; local government councils generated N530.73 million; garment industry made a total sum of N353.75 million, then pioneering and textile realised N185.72 million, while mining generated the least with N58.88 million.

Out of the total amount generated in Q4 2020, N212.52 billion was generated as Non-Import VAT locally while N143.35 billion was generated as Non-Import VAT for foreign.

“The balance of N98.81 billion was generated by the Nigeria Customs Service-Import VAT”, it added.

Meanwhile, for Company Income Tax (CIT) by Sectors for the period under review, the NBS stated that N295.72 billion was generated as against N416.01 billion generated in the third quarter.

The 7.5 per cent VAT rate became effective on February 1, 2020.