The National Bureau of Statistics has said that the manufacturing sector generated the highest amount of Value Added Tax (VAT) in the first three months of 2017 with N28.73 billion.
The Bureau in its “Sectoral Distribution of Value Added Tax (Q1 2017)” that this was closely followed by Professional Services and Commercial & Trading both generating N20.82billion and N12.89billion respectively.
Data released by the NBS yesterday on VAT collected from 28 key sectors of the economy show a growth of 10 per cent as against a five per cent decline in the 2015, 2016 period.
According to NBS, sectoral distribution of Value Added Tax (VAT) data for Q1 2017 reflected that the sum of N204.77bn was generated as VAT in Q1 2017 as against N207.35bn generated in Q4 2016 and N186.43bn in Q1 2016 representing 1.25% decrease Quarter-on-Quarter and 9.84% increase Year-on-Year.
VAT was introduced by the Federal Government of Nigeria in 1993 to replace the Sales Tax with the aim of increasing government revenue base. They have had a positive correlation with Gross Domestic Product (GDP).
The recently released figures cover key sectors including Agriculture and Plantations, Banks & Financial Institutions, Breweries, Bottling and Beverages, Building and Construction, Chemicals, Petro-Chemical and Petroleum Refineries, Pharmaceutical, and Professional Services.
According to NBS report, “sectoral distribution of VAT data for first quarter 2017(Q1 2017) reflected that the sum of N204.77billion was generated as VAT in Q1 2017 as against N207.35billion generated in Q4 2016 and N186.43billion in Q1 2016 representing 1.25per cent decrease Quarter-on-Quarter and 9.84per cent increase Year-on-Year.
“Other manufacturing generated the highest amount of VAT with N28.73billion generated and closely followed by Professional Services and Commercial & Trading both generating N20.82billion and N12.89billion respectively while Mining generated the least and closely followed by Local Government Councils and Textile and Garment industry with N35.07 million, N99.84 million and N230.89 million generated
“Out of the total amounted generated in Q1 2017, N126.64billion was generated as Non-Import VAT locally while N31.72billion was generated as Non-Import VAT for foreign. The balance of N46.41billion was generated as NCS-Import VAT,” the report by NBS said.