People & Money

VAT Earnings Jump 29 percent in Q3 2020

Nigeria generated N424.71 billion in value added tax for third quarter 2020 (Q3 2020), a report by the nation’s statistics bureau has shown.
From the N327.20 billion generated in the second quarter of 2020 (Q2 2020), the figure represents a 29.80 percent increase quarter-on-quarter (QoQ).
Put simply, Value Added Tax (VAT) is a consumption tax administered by the Federal Inland Revenue Service (FIRS).

Also Read: FGN, States and LGAs Shared N698bn Revenue in July – NBS

According to details of the sectorial distribution of value added tax for Q3 2020 report released on Monday by the Nigerian Bureau of Statistics (NBS), VAT generated in Q3 2020 increased by 54.37 percent against Q3 2019 (N275.12 billion) year-on-year (YoY).
The sectors that generated the highest VAT in Q3 2020 include: other manufacturing (N47.074 billion); professional services (N44.013 billion); commercial and trading (N21.183 billion); state ministries and parastatals (N19.641 billion); and breweries, bottling and beverages (N15.836 billion).

Also Read: Lagos State Accounts for 79% of Credits Booked Nationwide – NBS

On the other hand, the sectors that generated the lowest VAT in Q3 2020 include: Mining (N64.500 million); textile and garment industry (N346.269 million); pharmaceuticals, soaps and toiletries (N386.161 million); publishing, printing, paper packaging (N473.095 million); and local government councils (N567.973 million).
Out of the total amounted generated in Q3 2020 as VAT, N216.662 billion was generated as non-import VAT locally, N115.344 billion as non-import VAT foreign, while N94.701 billion was generated as Nigeria Customs Service-import (NCS-import) VAT.

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