Federal Govt Makes N1.5trn From VAT In 9 Months

Total Value Added Tax (VAT) collected by the Federal Government over the last nine months of 2021 increased by 40 per cent to N1.509 trillion compared to N1.07 trillion collected in the same period of 2020, despite a decline in collection in the third quarter.

Data released by the National Bureau of Statistics (NBS) on Saturday morning showed that revenue collected in the third quarter declined by 0.002 per cent when compared to what was collected in the second quarter of the year.

According to the NBS, total VAT collected in the first, second, and third quarters of 2021 were N496.39 billion, N512.25 billion, and N500.49 billion respectively, compared to N324.58 billion, N327.20 billion, and N424.71 billion in the corresponding quarters of 2020.

This indicates higher revenue in the first three quarters of 2021, reflecting an improvement in collections. On a year-on-year basis, this shows growth rates of 52.93 per cent, 56.56 per cent, and 17.84 per cent in Q1, Q2, and Q3 2021 respectively.

Sectorial analysis shows that collections from Other Manufacturing activities, Professional Services activities, and State Ministries & Parastatals accounted for the top three largest shares of revenue in Q1 2021 with N49.41 billion (21.97%), N42.50 billion (18.90%), and N26.96 billion (11.99%) respectively.

Non-import VAT local was N224.85 billion, non-import (foreign) VAT amounted to N171.66 billion, while NCS-import VAT stood at N99.88 billion. In Q2 2021, Other Manufacturing, Professional Services, and Commercial and Trading activities accounted for the largest collections with N44.89 billion, N29.30 billion, and N21.96 billion respectively.

In Q2 2021, non-import VAT local was N187.43 billion, lower than Q1 2021, while non-import (foreign) VAT was N207.69 billion, higher than Q1 2021. NCS-import VAT stood at N117.13 billion, also an improvement from Q1 2021.

On the other hand, Company Income Tax (CIT) collections for Q1 and Q2 2021 were N392.65 billion and N472.07 billion respectively, higher than the corresponding quarters of the previous year. By Q3 2021, CIT increased to N472.52 billion, still higher than Q3 of the previous year.

In terms of sectoral distribution, Breweries, Bottling and Beverages; Professional Services; and State Ministries & Parastatals accounted for the top three largest shares in Q1 2021 with N23.26 billion (15.27%), N18.17 billion (11.93%), and N17.35 billion (11.39%) respectively.