FG Realises N312bn From Value Added Tax in Q2, 2019

tax relief
  • FG Realises N312bn From Value Added Tax in Q2, 2019

The National Bureau of Statistics (NBS) has said the Federal Government through the Federal Inland Revenue Service (FIRS) generated N311.94 billion in Value Added Tax (VAT) in the second quarter of the year.

This was 7.92 percent higher than the N269.79 billion generated in the corresponding quarter of 2018 and represent an increase of 16.95 percent year-on-year.

According to the NBS, Nigeria realised N289.04 billion VAT in the first quarter of 2019 and N311.94 in the second quarter.

A break down of the report shows the manufacturing sector contributed N34.43 billion to the total amount in the second quarter. While the professional services added N29.58 billion.

Commercial and trading, N16.27 billion; textile and garment realised N316.91 million; Pharmaceutical VAT accounted for N250.09 million and the mining sector contributed the lowest VAT at N50.6 million.

The report further stated that N151.56 billion of the total sum was generated as non-import VAT locally, while another N94.90 billion was realised as non-import VAT for foreign.

The remaining N65.48 billion was generated as NCS-import VAT.

Meanwhile, the Chartered Institute of Taxation of Nigeria has thrown its weight behind FIRS plan to introduce 5 percent VAT on all online transactions.

The institute said it is the right move and should have been introduced a long time ago.

It stated, “The amount of money we are losing because we are not tracking these online transactions is huge. Even if we are not getting it fully right at the beginning, let us talk about it; let us bring it into our conversation and let us put it into action.

“In some climes, as you are transferring money, it is being taxed; even invisible trades are being tracked.”

On Monday, the FIRS announced it would commence 5 percent VAT deduction on online transactions by January 2020.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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