By Adedapo Adesanya
The National Bureau of Statistics (NBS) has disclosed that a sum of N275.12 billion was generated as Value Added Tax (VAT) in the third quarter of 2019. This amount is less than the N311.94 billion generated through VAT in the second quarter of 2019.
The NBS report indicated that the sum of N273.50 billion was generated in the third quarter of 2018, representing 11.81 percent decrease Quarter-on-Quarter and 0.59 percent increase Year-on-Year.
The report explained that professional services generated the highest amount of VAT with N32.09 billion followed by manufacturing which generated N30.27 billion, and then Commercial and Trading with N14.47 billion.
NBS further disclosed that mining generated the least, closely followed by Textile and Garment Industry and then Pharmaceutical, Soaps, and Toiletries with N44.30 million, N253.83million and N291.06 million respectively.
The bureau noted that out of the total amount generated in Q3 2019, N150.74 billion was generated as Non-Import VAT locally while N63 billion was realised as Non-Import VAT for foreign.
It also added that the balance of N61.37 billion was gotten as Nigeria Customs Service NCS-Import VAT.
Business Post reports that at the moment, government charges 5 percent VAT on goods and services, but it hopes to increase this to 7.5 percent from Wednesday, January 1, 2020.
This was one of the reasons President Muhammadu Buhari presented the Finance Bill alongside the 2020 Appropriation Bill in October 2019 to a joint session of the National Assembly.
The bill was to make it lawful for government to raise VAT to 7.5 percent from 5 percent. It was eventually passed by the parliament last month and is awaiting accent of the President.
The 2020 budget is based on the 7.5 percent VAT, with a large chunk of it to be used by state government under the new law.
Many Nigerians had kicked against the increment, but federal government said this action was taken to generate more revenue to carry out some of its core responsibilities.
Dipo Olowookere