VAT fetches N312bn in three months

The Federal Government generated N311.94bn between April and June; statistics provided by the National Bureau of Statistics have shown. In the first quarter of the year, January to March, the country generated N289.04bn through VAT. NBS revealed that N269.79bn was generated in Q2 2018 representing 7.92 per cent increase Quarter-on-Quarter and 16.95 per cent increase Year-on-Year.

The manufacturing sector generated the highest amount of VAT with N34.43bn. It was followed by professional services that generated N29.58bn; and commercial and trading, N16.27bn. Textile and garment generated a total of N316.91m in VAT; Pharmaceutical generated N250.09m while mining generated the least amount in VAT, N50.6m.Out of the total VAT value in Q2 2019, N151.56bn was generated as non-import VAT locally, while N94.90bn was generated as non-Import VAT for foreign. The balance of N65.48bn was generated as NCS-import VAT. As part of its tax revenue drive, the Federal Inland Revenue Service recently ordered companies to remit value-added tax and withholding tax by the 21st day of every month. It observed that some companies were fond of not deducting taxes at source. In another development, the Chartered Institute of Taxation of Nigeria has backed the plan by the Federal Government to introduce Value Added Tax on online transactions. The institute said it should have been introduced to the economy long ago as the same practice was obtainable in other climes because the nation was losing a significant amount of revenue by not taxing online transactions. It stated, “The amount of money we are losing because we are not tracking these online transactions is huge. Even if we are not getting it fully right at the beginning, let us talk about it; let us bring it into our conversation and let us put it into action. “In some climes, as you are transferring money, it is being taxed; even invisible trades are being tracked.” The institute said that when taxable incomes were earned, they must be taxed.


Source: Punch