VAT, import duties, others yield decreased returns in June — FAAC

…FG, States, LGs share N1.14trn

By Seun Ibiyemi

The Federation Account Allocation Committee (FAAC) has revealed that there was a sharp decrease in revenues accruing from the Value Added Tax (VAT), Import and excuse duties, amongst others.

The FAAC made this known at its June 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

The Committee in a Communique issued at the end of its meeting revealed that Companies Income Tax (CIT) and Petroleum Profit Tax (PPT), increased significantly, Import and Excise Duties, Royalty Crude and Gas, Customs External Tariff levies (CET), Electronic Money Transfer Levy (EMTL), and Value Added Tax (VAT) recorded considerably decreases.

The Committee shared a total sum of N1,143.210 Trillion to the three tiers of government as Federation Allocation for the month of May, 2024 from a gross total of N2,324.792 Trillion.

From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), and Exchange Difference (ED), the Federal Government received N365.813 Billion, the States received N388.419 Billion, the Local Government Councils got N282.476 Billion, while the Oil Producing States received N106.502 Billion as Derivation, (13 percent of Mineral Revenue).

The sum of N76.647 Billion was given for the cost of collection, while N1104.935 Billion was allocated for Transfers Intervention and Refunds.

The Communique issued by the Federation Account Allocation Committee (FAAC) at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax (VAT) for the month of May 2024, was N497.665 Billion as against N500.920 Billion distributed in the preceding month, resulting in a decrease of  N3.255 Billion.

From that amount, the sum of N19.907 Billion was allocated for the cost of collection and the sum of N14.333 Billion given for Transfers, Intervention and Refunds. The remaining sum of N463.425 Billion was distributed to the three tiers of government, of which the Federal Government got N69.514 Billion, the States received N231.713 Billion, Local Government Councils got N162.199 Billion.

Accordingly, the Gross Statutory Revenue of N1,223.894 Trillion received for the month  was lower than the sum of N1,233.498 Trillion received in the previous month of April 2024 by N9.604 Billion. From the stated amount, the sum of N56.109 Billion was allocated for the cost of collection and a total sum of N1,010.602 Trillion for Transfers, Intervention and Refunds.

The remaining  balance of  N157.183 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N61.010 Billion, States received N30.945 Billion, the sum of N23.857 Billion was allocated to LGCs  and N41.371 Billion was given to Derivation Revenue (13% Mineral producing States).

Also, the sum of N15.777 Billion from  Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.272 Billion, States got N7.573 Billion, Local Government Councils received N5.301 Billion, while N0.631 Billion was allocated for Cost of Collection.

The Communique also disclosed the sum of N587.456 Billion from Exchange Difference, which was shared as follows: N80.000 Billion allocated Transfers, Intervention and Refunds, leaving a balance of N507.456 Billion of which the  Federal Government received N233.017 Billion, States got N118.189 Billion, the sum of N91.119 Billion was allocated to Local Government Councils, N65.131 Billion was given for Derivation (13 percent of Mineral Revenue).

According to the Communique, the total revenue distributable for the current month of May 2024, was drawn from Statutory Revenue of N157.183 Billion, Value Added Tax (VAT) of N463.425 Billion,  N15.146 Billion from Electronic Money Transfer Levy (EMTL), and N507.456 Billion from Exchange Difference, bringing the total distributable amount for the month to N1,143.210 Trillion.

The balance in the Excess Crude Account (ECA) as at May 2024 stands at $473,754.57.