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Nigeria revenue from VAT rises 13.27% in Aug to N150.23 bln ~FAAC

By on September 18, 2020 0 145 Views

By Samuel Bankole

Nigeria generated a total of N150.23 billion from the Value Added Tax (VAT) in August, compared with N132.62 billion collected in the previous month, representing 13.27 percent increase, according to data released by the Federation Account Allocation Committee (FAAC).

According to Mahmud Isa-Dutse, Permanent Secretary Ministry of finance and budget, the country earned statutory revenue of N531.83 billion in August, down from N543.788 billion earned in July.

At the end of the FAAC meeting in Abuja on Thursday, the three tiers of government shared a total of N682.060 billion revenue, this was higher than the N676.407 billion shared in July among Federal, States and Local Government Councils and agencies.

A breakdown of the sharing showed that the federal government received N272.905 billion, the state governments received N197.648 billion and the local government councils received N147.422 billion from the total amount generated in August.

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The oil-producing states were allocated N30.881 billion as 13 percent derivation revenue, while N33.205 billion was released to all the revenue collection agencies of the government as the cost of collections.

The statement by the FAAC stated that for the month of August 2020, Oil and Gas Royalty, Companies Income Tax (CIT), Import and Excise Duty and Value Added Tax (VAT) increased considerably, while the Petroleum Profit Tax (PPT) decreased significantly.
The balance in the Excess Crude Account (ECA) as of September 17, 2020, stands at $72.409 million.

Nigeria distributes revenues from oil exports and centrally collected taxes among its three tiers of government on a monthly basis.

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There is a predetermined formula used in distributing the revenue among the three tiers of government, which allocate more money to the federal while the 36 states jointly collected less than the federal and the 774 local governments collected less than the states.

Also, statutory federal government agencies that are involved in revenue collections such as the Federal Inland Revenue Service (FIRS), Customs, and the state-oil firm Nigerian National Petroleum Corporation (NNPC) are allocated a certain portion of the income as the cost of collections.

The FAAC also allocated from the pool of fund generated 13 percent to states where the bulk of the revenue from oil production are generated to compensate them for the impact of oil mining and production on their environment

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