FG Generated More VAT From Professional Services, Manufacturing In Three Months

In the first quarter of 2020, the Federal Government generated N338.94 billion, more revenue on Value Added Tax (VAT) from professional services and manufacturing than any other sector, the National Bureau of Statistics (NBS) has disclosed in a report. 

The N338.94 billion generated from VAT in Q1 2020 represented a significant growth when compared to the N293.04 billion generated in Q1 2019. It was also stated that the increase recorded in the first quarter of 2020 surpassed that the N308.48 billion generated in Q4 2019.

“Sectoral distribution of Value Added Tax data for Q1 2020 reflected that the sum of N338.94bn was generated as VAT in Q1 2020 as against N308.48bn generated in Q4 2019 and N293.04bn generated in Q1 2019, representing 9.87 per cent increase quarter-on-quarter and 15.66 per cent increase year-on-year."

While splitting the contribution of each industry, NBS disclosed that Professional services VAT contributed N38.30 billion, making it the highest amount when compared to other VAT generated. Manufacturing was next, as the industry generated N37.37 billion.

“Professional services generated the highest amount of VAT with N38.30bn generated and closely followed by other manufacturing generating N37.37bn, commercial and trading generating N17.19bn while, mining generated the least and closely followed by textile and garment industry and local government councils with N61.83m, N306.05m and N319.04m generated respectively."

NBS further explained that, “Out of the total amounted generated in Q1 2020, N172.67bn was generated as non-import VAT locally while N93.67bn was generated is non-import VAT for foreign.” While the remaining N72.59 billion was generated from NCS-Import VAT.