The federal government generated over N2.81 trillion from both Value Added Tax (VAT) and Company Income Tax (CIT) in the first three quarters of the year, the National Bureau of Statistics (NBS) has revealed.
While the sum of N1.14 trillion was recorded for VAT receipts for the period, CIT collections stood at N1.33 trillion.
VAT collections for the first, second and third quarters of 2021 amounted to N496.39 billion, N512.25 billion and N500.49 billion respectively, indicating marked improvement in collections over the corresponding quarters of 2020 when consumption tax amounted to N1.07 trillion.
According to the Value Added and Company Income Tax (Q3 2021) report posted on its website yesterday, year-on-year, the VAT upsurge showed growth rates of 52.93 per cent, 56.56 per cent and 17.84 per cent in Q1, Q2, and Q3 2021.
The improvement in VAT collections further confirmed the resilience and recovery of the Nigerian economy following the devastating impact of the COVID-19 pandemic.
However, the sectoral distribution of VAT during the review period showed that other manufacturing activity; professional services activity and state ministries and
parastatals accounted for the top three largest share of revenue in Q1 2021 with N49.41billion or 21.97 per cent, N42.50 billion or 18.90 per cent, and N26.96 billion or 11.99 per cent respectively.
However, according to the report, non-import VAT (local) was N224.85 billion; non-import (foreign) VAT was N171.66 billion, while NCS-Import VAT stood at N99.88 billion.
Similarly, in Q2, the other manufacturing activity, professional services activity and commercial and trading activity accounted for the top largest collections with N44.89 billion or 23.95 per cent, N29.30 billon or 15.63 per cent and N21.96 billion or 11.71 per cent respectively.
Also, non-import VAT, both local and foreign stood at N187.43 billion and N207.69 billion respectively, while NCS-Import VAT stood at N117.13 billion.
The NBS noted that in the third quarter, the manufacturing activity, information and communication and mining and quarrying accounted for the top three largest share of total
VAT – amounting to N91.20 billion or 30.87 per cent, N59.25 billion or 20.05 per cent and N28.44 billion or 9.62 per cent respectively.
On the other hand, CIT collections for the first three quarters amounted to N392.65 billion, N472.07 and N472.52 billion respectively.
In terms of sectoral distribution, breweries, bottling and beverages , professional services activity and state ministries and parastatals accounted for the top three largest share in Q1 with N23.26 billion or 15.27 per cent, N18.17 billion or 11.93 per cent and N17.35 billion or 11.39 per cent respectively. Also, during the quarter, local CIT amounted N152.33 billion, the foreign component stood at N184.47 billion while other payments totaled N55.85 billion.
However, in Q2, company taxes from professional services, other manufacturing and banks and financial institutions stood at N130.09 billion (31.14 per cent), N87.27 billion (20.89 per cent) and N60.01 billion (14.36 per cent) respectively.
Of the aggregate, local and foreign CIT recorded N417.74 billion N51.61 billion respectively while other payments stood at N2.72 billion
In the same vein, in Q3, manufacturing activity recorded N64.48 billion; information and communication (N58.15 billion) and mining and quarrying (N36.01 billion) as the top three largest share of revenue at 22.08 per cent, 19.91 per cent and 12.33 per cent respectively.
