VAT: FG rakes in N808bn …Generates N31.48bn from manufacturing sector

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VAT: FG rakes in N808bn

.Generates N31.48bn from manufacturing sector

Udeme Clement & Faith Idem

The Federal Government has generated a huge sum of N808 billion from Value Added Tax, VAT, on three quarters in 2018 fiscal year.

The National Bureau of Statistics, NBS, released the record, states that the revenue generated from VAT for sectoral distribution covered the first, second and third quarters of 2018 economic year.

The revenue record from NBS shows that N269.79 billion was realised from VAT in the first quarter of 2018, N273.50billion in the second quarter and N266.73 billion in the third quarter of the same year.

The report also reveals that the manufacturing sector realised N31.48 billion, which is the highest amount of VAT generated in the year under review.

In the same vein, services and commercial/trading sub-sectors generated N25.57 billion and N15.99 billion the same period.

The report stated further that mining sector raked in the least amount of VAT. This follows by pharmaceutical, soaps, toiletries, textile and automobiles/assemblies with the sums of N52.70 million, N177.34 million and N265.35 million.

Comparatively, the record shows that out of the total amount realised in the year under review, about N128.62 billion was raked in as Non-Import VAT locally and N58.84 billion was generated as Non-Import VAT for foreign. On the whole, a balance of N86.04 billion was realised as Nigeria-Customs import VAT within the same period.

More so, VAT is a consumption tax placed on product whenever value is added at each stage on the supply chain. Therefore, VAT counts from production to the point of sale of a product.

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