- Value Added Tax Revenue Falls to N204.7bn
The National Bureau of Statistics on Tuesday released the total revenue generated by the country through Value Added Tax with receipts from VAT dropping from N207.35bn in the fourth quarter of 2016 to N204.77bn in the first quarter of this year.
The NBS in the report stated that manufacturing sector generated the highest amount of VAT with N28.73bn, adding that this is followed by professional services and commercial trading with N20.82bn and N12.89bn respectively.
On the other hand, the report stated that mining sector recorded the least VAT collection of N35.07m.
It reads in part, “Sectoral distribution of VAT data for Q1 2017 reflected that the sum N204.77bn was generated as VAT in Q1 2017 as against N207.35bn generated in Q4 2016 and N186.43bn in Q1 2016 representing 1.25 per cent decrease quarter-on-quarter and 9.84 per cent increase year-on-year.”
The report stated that out of the total VAT generated in the first quarter of2017, N126.64bn was generated as Non-Import VAT locally while N31.72bn was generated as Non-Import VAT for foreign. The balance of N46.41bn, the report added was generated as NCS-Import VAT.
The Minister of Finance, Mrs Kemi Adeosun, had called for improvement in the rate of tax compliance as a means of shoring up non-oil revenue for economic development.
The minister stated that the low level of non-oil revenue in the country is unacceptably low, adding that there is need for concerted efforts to improve revenue generation.
She said, “Revenue mobilization is critical to the success of Nigeria’s economic reform agenda. We have an unacceptably low level of non-oil revenue, and much of that is driven by a failure to collect tax revenues.
“With a tax to GDP ratio of only six per cent, one of the lowest levels in the world, we have a lot of work to do if we are going to build a sustainable revenue base that will deliver inclusive growth.
“Our data gathering programme over the last year has now given us the tools we need to be more aggressive at pursuing tax avoiders, both domestically and abroad.
“We are going to focus on tax in 2017 through an asset an income declaration scheme to address our low tax revenue collection and ensure improved compliance, a broader tax base and more sustainable revenue. This is fundamental to delivering on our reform plans.”