VAT generated ₦205 billion in Q1

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Value Added Tax (VAT) generated the sum of ₦204.77 billion into the coffers of government in the first quarter of 2017, according to a report released by National Bureau of Statistics (NBS), yesterday.

According to NBS, the sectoral distribution of Value Added Tax (VAT) data for Q1 2017 reflected that the sum of ₦204.77 billion generated as VAT in Q1 2017 represented a drop of 1.25 percent Quarter-on-Quarter compared to ₦207.35 billion generated in Q4 2016 and 9.84 percent increase Year-on-Year when compared to ₦186.43billion that was generated in the 1st quarter of 2016.

The report stated that the highest amount of VAT was generated by Other Manufacturing sector followed by Professional Services and Commercial and Trading. Mining, Local Government Councils and Textile and Garment industry generated the least amount of VAT within the period.

Other manufacturing relate to industries excluding Automobiles and Assemblies; Breweries, Bottling and Beverages; and Chemical, Paints and Allied industries.

Other manufacturing generated the highest amount of VAT with ₦28.73 billion generated and closely followed by Professional Services and Commercial & Trading both generating ₦20.82 billion and ₦12.89 billion respectively, while Mining generated the least and closely followed by Local Government Councils and Textile and Garment industry with ₦35.07 million, ₦99.84 million and ₦230.89 million generated, respectively.

“Out of the total amounted generated in Q1 2017, ₦126.64 billion was generated as Non-Import VAT locally while ₦31.72 billion was generated as Non-Import VAT for foreign. The balance of ₦46.41 billion was generated as NCS-Import VAT,” the report stated.

According to the NBS report, Banks and Financial Institutions generated ₦7.17 billion; Breweries, Bottling and Beverages generated ₦9.19 billion; Building and Construction generated ₦2.75 billion; State Ministries and Parastatals generated ₦11.21 billion; while Federal Ministries and Parastatals generated ₦5.71 billion in the period.

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