By Elizabeth Adegbesan
THE Federal Government generated N651.77 billion as Value Added Tax (VAT) from 28 sectors in the economy in the first half of the year (H1’20).
This represents 8.45 percent increase year-on-year (YoY) when compared to N600.94 billion generated in H1’19.
According to a report by the National Bureau of Statistics (NBS), professional services sector generated the highest amount of VAT with N95.92 billion followed by manufacturing sector with 67.63 billion.
The NBS explained that of the total amount generated during the period, N335.82 billion came as Non-Import VAT local, N161.74 billion as Non-Import VAT for foreign and N154.21 billion as Nigerian Custom Service (NCS) Import VAT.
The report stated: “Sectoral distribution of VAT data for H1’20 reflected that the sum of N651.77 billion was generated as VAT in H1’20 as against N600.98 billion generated in H1’19. This represents 8.45 percent growth Year-on-Year.
“Professional services generated the highest amount of VAT with N95.92 billion generated and closely followed by other manufacturing generating N67.63 billion, commercial and trading generating 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 amount generated in H1’20, N335.82 billion was generated as Non-Import VAT locally while N161.74 billion was generated as Non-Import VAT for foreign. The balance of N154.21 billion was generated as NCS-Import VAT.”
On quarterly basis, NBS stated that a total sum of N327.1 billion revenue was generated from VAT in the second quarter of 2020 (Q2 2020), up by 0.81percent when compared to N324.58 billion in Q1 2020.
The report however indicated that despite VAT remittance growing by 0.81% in the second quarter, critical sectors in the economy such as manufacturing, hotel catering, trading, transport, oil, and construction recorded significant declines in VAT remittances during the period.