Despite the lockdown measures which hit earnings of companies in 2020, Value Added Tax revenue(VAT) from the different sectors of the economy increased, adding N35 billion to peak at N1.53 trillion from N1.18 trillion of 2019.
Data from the sectoral distribution of VAT report for 2020, released by the National Bureau of Statistics (NBS) shows, Covid-19 could not affect the tax revenue from services rendered by companies in the tumultous year
Insidebussiness recalls that the Federal Government had in February 2020 effected a 50 per cent increase in VAT, a move it said would help it fund its budget obligations which resulted to VAT being moved to 7.5 per cent from five per cent.
NBS says Non-Import VAT generated the most in the four quarters of 2020 with N763 billion .
“Non- Import VAT foreign followed with N420.434bn, Nigerian Custom Service VAT rose to N347.72bn, while professional service generated N162.31bn.
According to data from the NBS, VAT revenue rose by 47.39 per cent to N454.69 billion in the fourth quarter.
Professional Services generated the highest amount of VAT with N42.38bn, closely followed by Other Manufacturing, which generated N39.45bn, and Commercial and Trading, which had N21.15bn.
“Beverage and bottling industry recorded N19.08bn, State Ministries and Parastatals generated N16.89bn, while the sum of N13.8bn came in from oil production.”
The report unfold that the mining industry generated the least, closely followed by pioneering, textile and garment industry, with N58.88 million , N185.72 million and N353.75 million respectively.
The NBS further revealed that out of the total amount generated in the reviewed period, N212.52 billion was generated as Non-Import VAT locally.
Non- import VAT, foreign, which was realised during the period was N143.35 billion .
Also out of the N454.69 billion , N98.81 billion was generated as Nigerian Custom Service-Import VAT, according to the bureau.
NBS said during the third quarter of 2020, N424.7 billion was generated as VAT, with N214.66 billion generated from Non- Import VAT locally.
Non- Import VAT foreign generated N115.3 billion , while Nigerian Customs Service VAT was N94.7 billion .
In the second quarter of last year, VAT generated dropped to N327.19 billion due to the impact of the COVID-19 pandemic and the resulting lockdown.
As a result, the Non- Import VAT locally fell to N163 billion , Non- Import VAT foreign recorded N82.4 billion , while NCS- Import VAT was N81.6 billion .
In the first quarter of 2020, N324.57 billion was generated as VAT; Non- Import VAT local was N172.67 billion ; Non- Import VAT foreign recorded N79.3 billion , while NCS- Import VAT had N72.59 billion .
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