FIRS generates ₦273.5 billion as VAT for Q3’18: NBS report
A total of ₦273.5 billion was generated by the Federal Inland Revenue Service, FIRS, as Value Added Tax (VAT) for the third quarter 2018, Q3’18.
This, according to the report of the National Bureau of Statistics (NBS) released yesterday, represents 9.16 percent year-on-year (YoY) increase on the ₦269.79 billion generated in the same period in 2017 and 2.5 percent quarter-on-quarter (QoQ) increase against ₦266.73 billion in Q2’18.
– Leading sectors –
Breakdown of sectorial contribution to the total VAT showed that ₦31.48 billion was generated through manufacturing sector, representing 11.5 percent of the total VAT revenue in Q3’18.
This was closely followed by professional services and commercial and trading sectors with both sectors generating ₦25.57 billion and ₦15.99 billion which represent 9.3 percent and 5.8 percent of the total generated amount respectively.
Breweries, bottling & beverages sector, placed fourth, accounting for ₦7.83 billion or 2.9 percent of the total VAT; ₦7.35 billion, representing 2.7 percent was pulled from oil sector; banks and financial institutions accounted for ₦4.52 billion, while the building & construction sector followed the next with total contribution of ₦2.38 billion.
Others are oil marketing, ₦1.75 billion; gas, ₦1.39 billion; hotel and catering, N1.19 billion and conglomerates, ₦1.04 billion.
– Least performing sectors –
Conversely, the mining sector generated the least, trailed closely behind by pharmaceutical, soaps & toiletries and textile and automobiles & assemblies sectors with ₦52.70 million, ₦177.34 million and ₦265.35 million VAT contributions respectively.
The chemical, paints & allied industries polled ₦393.04 million in VAT; agricultural and plantation recorded ₦722.40 million VAT contribution, while ₦ 978.45 million was generated via petrochemical and petroleum refineries sector during the period under review.
– Q3’18 versus Q2’18 sectorial performance –
Further breakdown showed year-on-year, most of the sectors recorded appreciable increase in the value of tax generated while QoQ, VAT generation dulled for most of the sectors as the amount generated lagged compare to the preceding quarter in 2018 (Q2’18).
The report showed that the mining sector recorded the highest YoY increase of 54.40 percent, while QoQ, its tax generation rose by 10.14 percent. agricultural and plantation sector’s VAT rose by 42.17 percent within the one year period; commercial and trading was up 42.25 percent; automobiles & assemblies’ VAT contribution increased by 39.05 percent, while hotel & catering sector recorded 39.04 percent YoY increase.
Banks and financial institutions recorded 22.26 percent VAT increase; chemical, paints & allied industries contribution went up by 12.52 percent, while gas, oil marketing and breweries, bottling & beverages sectors saw 1.21 percent, 1.02 percent and 0.93 percent increases respectively.
On the other hand, the government recorded highest tax reduction in the conglomerate sector as the sector’s contribution fell by 39.48 percent, followed by the building & construction sector, which recorded YoY VAT decline of 25.97 percent.
– Other VAT contributions –
Meanwhile federal ministeries and parastatals generated a total of ₦4.8 billion, 13.50 percent decline compared to ₦5.55 billion generated through the same medium in Q2’18, but rose by 22.22 percent YoY.
Local government councils upped their tax generation drive within the period as the amount generated rose to ₦407.05 million in Q3’18, representing 120.73 percent and 12.44 percent YoY and QoQ increase respectively.
Also, the government generated ₦548.73 million from offshre operations, which represents 33.64 percent and 0.26 percent YoY and QoQ increase respectively.
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