- FG Realises N275.12bn from VAT in Q3, 2019
The Federal Government generated a total sum of N275.12 billion from Value Added Tax (VAT) in the third quarter (Q3) of the year, the National Bureau of Statistics (NBS) reported on Monday.
This was 11.81 percent lower than the N311.94 billion generated in the second quarter but 0.59 percent higher than the N273.50 billion reported in the same period of 2018.
According to the NBS, professional services earned the most VAT during the quarter, generating N32.09 billion. This was closely trailed by the manufacturing with N30.27 billion.
Commercial and trading, mining, textile and garment industry and pharmaceutical, soaps & toiletries generated N14.47 billion, N44.30 million, N253.83 million and N291.06 million, respectively.
Non-Import VAT generated locally accounted for N150.74 billion while N63 billion was realised from Non-Import VAT for foreign.
The remaining N61.37 billion was earned as NCS-Import VAT.
In the first nine months of the year, the government realised a total of N876.09 billion in VAT. A sum of N289,038,337,447.65 was generated from the first three months of the year while N311,943,065,869.95 was from the second quarter of 2019.
The number is expected to improve by next year following the passage of the Finance Bill that seeks to improve VAT by 50 percent from 5 percent to 7.5 percent in 2020 in an effort to up revenue generation
Despite experts saying the move would worsen the burden of the Nigerian people and further weigh on economic productivity, the national assembly passed the bill. According to the lawmakers, the 2020 budget was designed around 7.5 percent VAT, therefore, the success of the 2020 budget depends on the Finance Bill.