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Nigeria earns N424.7 bln from VAT in third quarter of 2020 ~NBS

By on November 2, 2020 0 149 Views

By Oludare Mayowa

Nigeria earned a total of N424.71 billion from Value Added Tax (VAT) in the third quarter of 2020, compared with N327.20 billion generated in the second quarter of the year, the National Bureau of Statistics (NBS) said in a report on Monday.

A breakdown of the amount generated from VAT in the third quarter of the year showed that N214.66 billion was collected through Non-Import VAT locally while N115.34 billion was generated as Non-Import VAT for foreign with the balance of N94.70 billion generated as NCS-Import VAT, the report stated.

Also, a closer look at the numbers showed that other Manufacturing generated the highest amount of VAT with N47.07 billion generated and followed by Professional Services with a total of N44.01 billion.

Commercial and Trading generating N21.18 billion while Mining generated the least and closely followed by Textile and Garment Industry and Pharmaceutical, Soaps & Toiletries with N64.50 million, N346.27 million and N386.16 million generated respectively.

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Nigeria generated a total of N6.87 billion in VAT from the banking and financial institutions in the third quarter and a total of N17.41 billion year-to-date from the sector, according to the report.

Nigeria commenced the implementation of a new VAT rate, which was hike to 7.5 percent this year from 5 percent previously, contributing to the increased revenue being generated from the consumption tax.

Analysts also said that the increased earnings from VAT was indications of improvement in economic activities in the period under review as the country gradually reopen for business after the lockdown triggered by efforts to contain the spread of the Coronavirus pandemic in the country.

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