• Wednesday, June 12, 2024
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VAT revenue hits N563.72 billion in Q4

FG to get 10% of distributable VAT revenue, as sharing formula review plans begin

The Manufacturing, Information and Communication, and Mining sectors have all emerged as the largest share contributors of the Value Added Tax (VAT) revenue as it hit N563.72 billion in quarter four(Q4), latest data by National Bureau of Statistics (NBS) has revealed.

According to the NBS data released Friday, the top three largest shares in Q4 2021 were manufacturing with 30.86 per cent, information and communication with 18.72 percent and mining and quarrying with 9.91 percent.

However, the NBS report noted that the activities of extraterritorial organizations and bodies recorded the least share with 0.02 percent, followed by activities of households as employers, undifferentiated goods and services-producing activities of households for own use with 0.04 percent; and water supply, sewerage, waste management and remediation activities with 0.11 percent.

Read also: New taxes unsettle manufacturers, stock market

In addition, it also indicated that on a year-on-year(y-o-y) basis, VAT collections in Q4 2021 increased by 23.98 percent from Q4 2020.

While noting this, it said, “On the aggregate, Value Added Tax (VAT) for Q4 2021 was reported at N563.72 billion, a growth of 12.63 percent on a quarter-on-quarter basis from N500.49 billion recorded in Q3 2021.”

Further analysis also showed that local payments recorded were N333.29 billion in Q4 2021, while Foreign VAT Payment contributed N103.52 billion.

“On a quarter-on-quarter basis, the activities of extraterritorial organizations and bodies recorded the highest growth rate with 150.16 percent, followed by agriculture, forestry and fishing with 92.48 percent.

“On the other hand, arts, entertainment and recreation had the lowest growth rate with -7.07 percent, followed by education with -5.69 percent,” it said.