Heritage Bank introduces innovative products for cadre of schools, Alumni
By Kayode Tokede
The total remittance of the Value Added Tax (VAT) from the financial services sector to the Federal Government in the second quarter of 2021 increased by 134.94 per cent, standing at N7.712 billion.
Data on the Sectoral Distribution of VAT for Q2’ 2021 from the National Bureau of Statistics, (NBS) shows that VAT from the sector was N3.382 billion in Q1 2021, jumping 50.87 per cent year on year.
The report also stated that government revenue from Value Added Tax, VAT, appreciated by 3.20 per cent, on a quarterly basis to N512.25 billion in the second quarter of 2021 from N496.39 billion in Q1’21.
The NBS report stated that Manufacturing, Professional Services and Commercial and Trading sectors recorded the biggest contributors of VAT to the government, while the Textile and Garment industry, Pioneering and Pharmaceutical and Soaps and Toiletries sectors were the lowest in tax accruals.
The report shows that categories under the ‘Other Manufacturing’ sector generated the highest amount of VAT (N44.89 billion) closely followed by Professional Services which generated N29.30 billion during the quarter.
“Sectoral distribution of Value Added Tax (VAT) data for Q2 2021 reflected that the sum of N512.25 billion was generated as VAT in Q2 2021, rising from the N496.39 billion generated in Q1 2021 and N327.20bn generated in Q2 2020 representing a 3.20 per cent increase Quarter-on-Quarter and 56.56 per cent increase Year-on-Year.
“Other Manufacturing generated the highest amount of VAT with N44.89 billion generated and closely followed by Professional Services generating N29.30 billion, Commercial and Trading generating N21.96 billion while Textile and Garment’s industry generated the least and closely followed by Pioneering and Pharmaceutical, Soaps and Toiletries with N77.74 million, N169 million and N188.71 million generated respectively.
Out of the total amount generated in Q2 2021, N187.43 billion was generated as Non-Import VAT locally while N207.69 billion was generated as Non-Import VAT for foreign. The balance of N117.13 billion was generated as NCS-Import VAT.
Further check on the report, showed that the Breweries, Bottling and Beverages sector declined in VAT payment, depreciating by 70.68 per cent on a quarterly basis to stand at N3.475 billion down from N11.854 billion in Q1 2021, while it fell by 66.68 per cent year on year.
Federal Ministeries and parastatals total VAT for the period in review is stood at N5.222 billion down from N8.794 billion the sector paid the previous quarter. The MDAs’ tax remittance dropped by 40.62 per cent quarter on quarter and 10.28 per cent year on year.
Also, the NBS data noted that Hotel and Catering Services spent N3.244 billion in tax payment, representing a 13.58 per cent increase in the quarter from N2.856 billion. The hospitality sector also grew its tax expense to the government by 127.28 per cent year-on-year.
