The National bureau of statistics has reported an increased vat collection revenue from N1.43 trillion in Q1 2024, to an improved revenue at a growing rate of 9.11 per cent to N1.56 trillion in Q2 2024.
Value Added Tax is a consumption tax paid when goods are purchased and services rendered It is a multi-stage tax.
VAT is borne by the final consumer. All goods and services (produced within or imported into the country) are taxable except those specifically exempted by the VAT Act. VAT is charged at a rate of 7.5 per cent.
The NBS report signifies a growth rate of 9.11 per cent on a quarter on quarter basis from N1.43 trillion in Q1 2024.
A break down of Vat revenue collection indicates that local payments recorded N792.58 billion, foreign Vat payments accumulated N395.74 billion, while import Vat contributed N372.95 billion, and the highest growth rate was recorded by Human health and social work activities at 98.44 per cent.
The NBS report reads..”On the aggregate, Value Added Tax (VAT) for Q2 2024 was reported at N1.56 trillion, show ing a growth rate of 9.11 per cent on a quarter-on-quarter basis from N1.43 trillion in Q1 2024.
Lo cal payments recorded were N792.58 billion, Foreign VAT Payments were N395.74 billion, while import VAT contributed N372.95 billion in Q2 2024. On a quarter-on-quarter basis.
Human health and social work activities recorded the highest growth rate with 98.44 percent, followed by agriculture, forestry and fishing with 70.26 percent, and Water supply, sewerage, waste management, and remediation activities with 59.75 percent.”
“On the other hand, Activities of house holds as employers, undifferentiated goods and services producing activities of households for own use had the lowest growth rate with 46.84 per cent, followed by Real estate activities with 42.59 per cent, it said.”
For sectoral contributions, the report pegs the top three largest shares in Q2 2024 as Manufacturing at 11.78 per cent, information and communication at 9.02 per cent and mining and quarrying with 8.79 per cent. It went further by stating the activities of households as employers Undifferentiated goods and services for households recorded the least share at 0.00 per cent.
“In terms of sectoral contributions, the top three largest shares in Q2 2024 were manufacturing with 11.78 per cent ; information and communication with 9.02 per cent; and Mining and quarrying with 8.79 per cent.
Nevertheless, activities of households as employers, undifferentiated goods and services producing activities of households for own use is stagnant, followed by Activities of extraterritorial organizations and bodies with 0.01 per cent; and Water supply, sewerage, waste management and remediation activities with and real Estate Services 0.04 per cent each.”
“However, on a year-on-year basis, VAT collections in Q2 2024 increased by 99.82 per cent from Q2 2023″ , the report said.
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