FG Generated N600.15bn from VAT in Q2

James Emejo in Abuja

The federal government generated the sum of N600.15 billion from Value Added Tax (VAT) in the second quarter of the year (Q2 2022), the National Bureau of Statistics (NBS) disclosed yesterday.

The figure represented a growth rate of 1.96 per cent when compared to the N588.59 billion recorded in the preceding quarter.

According to the Value Added Tax (VAT) Q2 2022 report, which was obtained from the statistical agency’s website, local payments accounted for N359.12 billion of total collections, while foreign VAT payments contributed N111.13 billion in the review period.

Quarter-on-quarter, electricity, gas, steam, and air conditioning supply recorded the highest growth rate with 116.47 per cent, followed by accommodation and food service activities with 42.44 per cent.

According to the apex statistical agency, activities of extraterritorial organisations and bodies had the lowest growth rate with –42.39 per cent while activities of households as employers, undifferentiated goods- and services-producing activities of households for own use represented -36.57 per cent.

In terms of sectoral contributions, manufacturing with 33.08 per cent, information and communication 18.98 per cent, and mining and quarrying 10.60 per cent – were the top three largest shares of VAT in Q2.

On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.03 per cent, followed by activities of extraterritorial organisations and bodies with 0.05 per cent; and water supply, sewerage, waste management and remediation activities at 0.13 per cent.

Essentially, electricity, gas, steam and air conditioning supply accounted for N3.97 billion of VAT, education N46.60 billion, arts, entertainment and recreation N619.19 million, and construction N4.08 billion.

Accommodation and food services contributed N5.24 billion to consumption tax while activities of extraterritorial organisations and bodies accounted for N165.38 million.

Financial and insurance activities contributed N22.34 billion, Information and Communication technology N68.18 billion, and manufacturing N118.80 billion during the review period.

Other contributors to VAT included transportation and storage N15.50 billion, and real estate activities N945.30 billion.

The Nigeria Customs Service (NCS) Import VAT represented N129.89 billion while wholesale and retail trade, and repair of motor vehicles and motorcycles accounted for N16.21 billion.

Mining and quarrying contributed N38.08 billion to VAT while other services accounted for N15.24 billion as well as human and social works activities which represented N681.61 million in the period under review.

Also, year-on-year, VAT collections in Q2 increased by 17.16 per cent from Q2 2021.