Value Added Tax (VAT) payments, a consumption tax levied on goods and services, made in Nigeria rose 14.2 percent in the third quarter (Q3) of 2024.
According to the National Bureau of Statistics (NBS), Nigerians paid N1.78 trillion in three months (July-September 2024) compared to N1.56 trillion recorded in the preceding second quarter (Q2) of 2024 (April -June 2024).
A breakdown showed that local payments recorded were N922.87 billion, Foreign VAT Payments were N448.85 billion, while import VAT contributed N410.62 billion in Q3 2024.
However, on a year-on-year basis, VAT collections in Q3 2024 increased by 88 per cent from Q3 2023
On a quarter-on-quarter basis, Human health and social work activities recorded the highest growth rate with 250.4 percent, followed by the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 102.1 percent.
On the other hand, water supply, sewerage, waste management and remediation activities had the lowest growth rate with a negative 41.9 percent drop, followed by activities of extraterritorial organizations and bodies with 36.1 percent.
In terms of sectoral contributions, the top three largest shares in Q3 2024 were manufacturing with 22.2 percent; information and communication with 20.9 percent; and mining & quarrying activities with 18.9 percent.
Nevertheless, the NBS data showed that activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01 percent, followed by activities of extraterritorial organizations and bodies with 0.01 percent and water supply, sewerage, waste management, and remediation activities with 0.03 percent.
Meanwhile, the NBS also disclosed that Company Income Tax (CIT) for the quarter under review was reported at N1.77 trillion, indicating a drop of 28.2 percent on a quarter-on-quarter basis from N2.47 trillion in Q2 2024. However, on a year-on-year basis, CIT collections in Q3 2024 increased by 1.4 percent from Q3 2023.
CIT refers to taxes imposed on the profit of companies domiciled in the country. It is charged on net profit after other expenses and deductions have been removed from the revenue.
Local payments received in Q3 were N920.91 billion, while foreign CIT Payment contributed N852.29 billion in Q3 2024.
On a quarter-on-quarter basis, electricity, gas, steam and air conditioning supply recorded the highest growth rate with 47.5 percent, followed by public administration and defence and compulsory social security with 19.3 percent.
On the other hand, accommodation and food service activities had the lowest growth rate as it receded by 73.3 percent, followed by financial and insurance activities with a 70.0 percent slide.
In terms of sectoral contributions, the top three largest shares in Q3 2024 were manufacturing with 25.5 percent, followed by mining and quarrying with 18.4 percent; and information and communication with 15.1 percent.
Nevertheless, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.004 percent, followed by water supply, sewerage, waste management, and remediation activities with 0.03 percent and Activities of extraterritorial organizations and bodies with 0.08 percent.
