VAT Rises 17.28% to N298bn in Q4 2018

tax relief
  • VAT Rises 17.28% to N298bn in Q4 2018

The National Bureau of Statistics has revealed that Nigeria generated N298.01 billion as Value Added Tax (VAT) in the fourth quarter of 2018.

This was higher than the N273.50 billion generated in the third quarter and N266.73 billion from the second quarter, representing an increase of 8.96 per cent quarter-on-quarter and 17.28 per cent year-on-year.

The manufacturing sector generated N28.82 billion, the highest amount of VAT. This was followed by Professional Services and Commercial and Trading, both generated N24.12 billion and N16.02 billion, respectively.

While the mining sector generated the least and closely followed by Pharmaceutical, Soaps & Toiletries and Chemical, Paints and Allied Industries with N35.75 million, N209.33 million and N258.39 million, respectively.

Out of the total amount generated, N138.42 billion was generated as Non-Import VAT locally, while N47.89 billion was generated as Non-Import VAT for foreign. The remaining N111.71 billion was generated as NCS-Import VAT.

The Federal Inland Revenue Services (FIRS) on Thursday said N23 billion was generated from corporate bank accounts of tax defaulters. According to the agency, the 3,000 companies suspended do not have a tax identification number, therefore, couldn’t remit tax deducted from customers back to government.

The agency generated N5.32 trillion as tax revenue in 2018.

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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