- VAT Revenue Dips by N530bn in 2019
The total amount generated by the nation from Value Added Tax (VAT) dipped by N530 billion from the N1.7 trillion realised in 2018 to N1.17 trillion in 2019, the Central Bank of Nigeria (CBN) stated in its released economic report.
In the report, a total sum of N301.62 billion was generated by the Federal Inland Revenue Service (FIRS) in the first quarter of the year under review while that number dropped by N6.13 billion to N295.49 billion in the second quarter of 2019.
The amount realised in the third quarter declined further to N290.87 billion as more businesses were exempted from paying VAT as a means to stimulate the economy.
Similarly, the trend continued in the final quarter of the year as realised VAT revenue declined by another N2.92 billion from N290.87 billion filed in the third quarter to N287.93 billion.
While the inability of the federal government to raise enough revenue to fund the nation rising budget was the reason for VAT increment from 5 percent to 7.5 percent, exemptions and refusal of the masses to comply with various tax laws remained a concern.
According to the Executive Chairman, FIRS, Mohammed Nami, businesses in the country must register with FIRS to pay tax as stated by the law. He, however, warned that any business caught doing otherwise would face the full wrath of the law.
He said, “It’s your statutory responsibility whether you just register today with Corporate Affairs Commission, to come over to the Federal Inland Revenue to register as VAT agent. That is the first responsibility.
“The second responsibility is that you should keep a good record of your transactions because if you don’t keep good records and eventually during the compliance process and monitoring process it is discovered that you have traded well above N25m, the taxes will be paid in arrears.”