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Nigeria earnings from VAT up 52.93% y/y to N496.39 bln in Q1 2021 ~NBS

By on May 8, 2021 0 177 Views

By Oludare Mayowa

Nigeria earned a total of N496.39 billion from Value Added Tax (VAT) in the first three months of 2021 compared with N324.58 billion generated in the corresponding period of last year.

The latest data from the National Bureau of Statistics (NBS) showed that the country earned N454.69 billion from VAT in the fourth quarter of last year.

The data showed that earnings from VAT rose 9.17 percent in the first quarter of 2021 against the last quarter of last year, Nigeria’s earnings from VAT also grew 52.93 percent year-on-year.

“Out of the total amount generated in Q1 2021, N224.85 billion was generated as Non-Import VAT locally while N171.66 billion was generated as Non-Import VAT for foreign.

“The balance of N99.88 billion was generated as NCS (Nigeria Customs Service) -Import VAT,” the NBS stated in the report.

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Breaking down of the revenue from the sales tax also showed that earnings from other Manufacturing contributed the highest amount in the period under review.

Other manufacturing contributed a total of N49.41 billion to the VAT pool and closely followed by N42.50 billion from Professional Services.

State Ministries and Parastatals generating N26.96 billion while Mining generated the least and closely followed by Pioneering and Textile and Garment Industry with N48.36 million, N77.01 million and N289.41million generated respectively.

Observer noted that the increase in VAT collection may not be unconnected with the increase in the rate from 5 percent previous to 7.5 percent last year and resumption of business activities which was disrupted by the Coronavirus pandemic last year.

The government imposed major restrictions on businesses and people toward the end of the first quarter last year and for the better part of the year to contain the spread of the virus, disrupting the economy and government revenue.

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