Nigeria’s VAT Revenue Jumps to N651.77bn in Six Months

Nigeria’s value-added tax (VAT) has increased by 8.45 per cent – from the N600.9 billion generated in the first half of 2019 to N651.7 billion in 2020.

The National Bureau of Statistics (NBS) disclosed this in the sectoral distribution on value-added tax report released on Monday, July 27, 2020.

The report said the total revenue was generated from 28 sectors of the economy.

The Federal Government of Nigeria started the implementation of the 7.5 per cent VAT in February 2020. The implementation was part of the tax amendments made in the 2019 finance act.

According to the report, Professional services generated the highest with N75.92 billion, followed by manufacturing (N67.63 billion); commercial and trading (N31.10 billion); breweries, bottling and beverages (N24.76 billion); and states ministries and parastatals (N22.50 billion).

The mining sector generated the least amount with N127.57 million.

Other sectors that were ranked were textile and garment industry (N499.18 million); pharmaceutical, soaps and toiletries (N648.77 million); local government councils (N802.38 million); and publishing, printing, paper packaging (N884.34 million).

The report also said that N335.82 billion was generated as non-import VAT locally while N161.74 billion was generated as non-import VAT for foreign while the balance of N154.21 billion was generated as Nigeria Custom Service-import VAT.