• Friday, April 12, 2024
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BusinessDay

VAT revenue increases by 26% to N1.2trn in Q4 2023

Tax Appeal Tribunal begins digital operations to boost reforms

The federal government in the fourth quarter of 2023 generated a total of N1.20 trillion from Value Added Tax. This is a 26.6 percent increase from N948 billion generated in the third quarter.

 

According to the National Bureau of Statistics report, local payments recorded were N630 billion, foreign VAT payments were N326.27 billion, while import VAT contributed N244.04 billion in the period.

On a quarter-on-quarter basis, agriculture, mining and quarrying recorded the highest growth rate with 63.75 percent, followed by the other services activities with 61.98 percent.

On the other hand, activities of extraterritorial organisations and bodies activities had the lowest growth rate with –19.44 percent, followed by financial and insurance with –8.46 percent

In terms of sectoral contributions, the top three largest shares in Q4 2023 were manufacturing with 13.24 percent, information and communication with 10.02 percent and mining and quarrying with 7.91 percent.

“Nevertheless, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0 percent, followed by activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management and remediation activities with 0.03 percent and real estate activities 0.07 pper cent agriculture, forestry and fishing with 0.10%. However, on a year-on-year basis, VAT collections in Q4 2023 increased by 72.12 per cent from Q4 2022,” the report stated.