The Federal Government recorded 8.45% growth year-on-year on Value Added Tax (VAT) generation with collection of N651.77 billion in the first half year 2020, National Bureau of Statistics (NBS) confirmed yesterday.
The figure is against N600.98 billion generated in first half year 2019. NBS sectoral distribution revealed that Professional Services generated the highest amount of VAT with N95.92 billion, closely followed by other Manufacturing generating N67.63 billion, Commercial and Trading generating N31.10 billion.
Mining generated the least and closely followed by Textile and Garment Industry and Pharmaceutical, Soaps and Toiletries with N127.58 million, N499.19 million and N648.78 million generated respectively.
The report stated that Commercial and Trading generated N31.10 billion, while Mining generated the least and closely followed by Textile and Garment Industry and Pharmaceutical, Soaps and Toiletries with N127.58 million, N499.19 million and N648.78 million respectively.
Out of the total amounted earned by the Federal Government in the first half of this year, the NBS stated that N335.82 billion was generated as Non- Import VAT locally while N161.74 billion was generated as Non-Import VAT for foreign.
It stated that the balance of N154.21 billion was generated as Nigeria Customs Service Import VAT.
Further breakdown showed that banking and finance sector contributed N5.42 billion in the first half of this year compared to N4.19 billion in the same period of 2019. It said Automobiles and Assemblies contributed N751.56 million during the period under review as against first half 2019 figure of N421.443 million, Agricultural and Plantations N973.26 million against previous figure of N627.3 million.
Other sectoral contributions to VAT in the first half of 2020, according to NBS, are Breweries, Bottling and Beverages N14.33 billion as against N10.83 billion; Building and Construction N2.84 billion against N2.74 billion; Chemicals, Paints and Allied Industries N569.02 million against N522.7 million; Commercial and Trading N17.18 billion as against N14.92 billion and Conglomerates N1.1 billion as N1.51 billion