The federal government generated N424.7 billion as Value Added Tax (VAT) in the third quarter of the year (Q3’20). This represents a rise of 30 per cent in VAT generated when compared to N275.12 billion in Q2’20.
The National Bureau of Statistics, NBS, disclosed this over the weekend in its Sectoral Distribution of VAT Q3’20.
Despite the Corona Virus Pandemic and civil unrest during the period, the bureau said Other Manufacturing sector generated the highest amount of VAT with N47.07 billion while Pharmaceutical, Soaps & Toiletries sector generated the least amount of VAT with N386.2 million.
The report stated: “Sectoral distribution of Value Added Tax (VAT) data for Q3’20 reflected that the sum of N424.71 billion was generated as VAT in Q3’20 as against N327.20bn generated in Q2 2020 and N275.12bn generated in Q3 2019 representing 29.80% increase Quarter-on-Quarter and 54.37% increase Year-on-Year.
Other Manufacturing generated the highest amount of VAT with N47.07bn generated and closely followed by Professional Services generating N44.01bn, Commercial and Trading generating N21.18bn while Mining generated the least and closely followed by Textile and Garment Industry and Pharmaceutical, Soaps & Toiletries with N64.50mln, N346.27mln and N386.16 mln generated respectively.
Out of the total amount generated in Q3 2020, N214.66bn was generated as Non-Import VAT locally while N115.34bn was generated as Non-Import VAT for foreign. The balance of N94.70bn was generated as NCS-Import VAT.