• Friday, March 29, 2024
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VAT generated in Q3 2018 jumped by 2.54% on quarter-on-quarter basis

VAT generated in Q3 2018 jumped by 2.54% on quarter-on-quarter basis

Data on the sectoral distribution of Value-Added Tax (VAT) for Q2 and Q3 2018 showed that N273.50 billion was generated as VAT in Q3 2018 compared with N266.73 billion generated in the second quarter and N269.79 billion generated in Q1 2018, indicating a positive growth of 2.54 percent quarter-on-quarter and 9.16 percent year-on-year.

BusinessDay analysis of the report found that manufacturing generated the highest amount of VAT in Q3 2018 at N31.483 billion, down by N975 million from N32.458 billion generated in the second quarter of2018.
Out of the 24 sectors covered in the report, 13 recorded a negative growth (quarter-on-quarter) in VAT generated in Q3 2018 compared with the previous period, the report shows.

After manufacturing, professional services and commerce and trading generated the second and third highest amount of VAT in the period of concern. For professional services, VAT generated rose quarter-on-quarter by 27.73 percent to N25.567 billion in Q3 2018 from N20.016 billion in Q2 2018.
Commerce and trading recorded a slight decrease of 0.68 percent quarter-on-quarter from N16.108 billion in Q2 2018 to N15.998 billion in Q3 2018.
VAT generated from banks and financial institutions declined by 4.87% to N4.516 billion in Q3 2018 from N4.747 billion in the previous quarter.
VAT realised from properties and investments surged by 18.8% to N1.278 billion in the period of concern from N1.075 billion in the preceding quarter.

Although, VAT generated from mining expanded by 10.14% quarter-on-quarter to N52.701 million in Q3 2018 from N47.849 million in Q2 2018, the sector generated the least amount of VAT in Q3 2018.
Building and construction recorded the biggest quarter-on-quarter decline of 34.76% to N2.506 billion in Q3 2016 compared to N3.841 billion and N3.246 billion generated in the previous two quarters.
Out of the total amount generated in Q3 2018, N128.62 billion was generated as non-import VAT locally while N58.84 billion was generated as non-import (foreign) VAT. The balance of N86.04 billion was generated as NCS-Import VAT.