Revenue earned from Value Added Tax (VAT) grossed to N1.53 trillion in 2020 despite wrecks inflicted on various sectors of Nigeria’s economy by COVID-19 pandemic, the National Bureau of Statistics (NBS) has confirmed.
The latest VAT figure was higher to N1.18 trillion generated by the different sectors at the end of 2019. The increase is not unconnected to hike in VAT from 5 per cent to 7.5 per cent by the Federal Government.
NBS’ breakdown showed Non-Import VAT generated the most in the four quarters of 2020 with N763 billion; Non-Import VAT foreign followed with N420.434 billion; Nigerian Customs Service VAT rose to N347.72 billion, while professional service generated N162.31 billion. In the fourth quarter alone, VAT revenue rose by 47.39 per cent to N454.69 billion, according to the latest data from the NBS.
Professional services generated the highest amount of VAT with N42.38 billion generated and closely followed by Other Manufacturing which generated N39.45 billion, and Commercial and Trading which had N21.15 billion. Beverage and bottling industry recorded N19.08 billion, State Ministries and Parastatals generated N16.89 billion while the sum of N13.8 billion came in from oil production.
The NBS disclosed that the mining industry generated the least and closely followed by pioneering, and textile and garment industry with N58.88 million, N185.72 million and N353.75 million respectively.
The NBS further revealed that out of the total amount generated in the reviewed period, N212.52 billion was generated as Non-Import VAT locally. Non-Import VAT for foreign, which was realised during the period, was N143.35 billion. Also out of the N454.69 billion, N98.81 billion was generated as Nigerian Custom Service – Import VAT. NBS said during the third quarter of last year, N424.7 billion was generated as VAT, with N214.66 billion generated from Non-Import VAT locally, Non- Import VAT foreign generated N115.3 billion, while Nigerian Customs Service VAT was N94.7 billion. In the second quarter of 2020, VAT generated dropped to N327.19 billion due to the impact of COVID- 19 pandemic and the resulting lockdown.
As a result, the Non- Import VAT locally fell to N163 billion, Non-Import VAT foreign recorded N82.4 billion, while NCS-Import VAT recorded N81.6 billion. In the first quarter of 2020, N324.57 billion was generated as VAT, with Non- Import VAT locally recording N172.67 billion, Non-Import VAT foreign recorded N79.3 billion, while NCS-Import VAT had N72.59 billion.