VAT revenue increased by N65bn in June — FAAC
…As FG, States, LGCs share N1.3trn
By Mathew Denis, Abuja
Value Added Tax (VAT) for the month of June 2024 increased by N65.020 Billion according to a Communique issued by the Federation Account Allocation Committee (FAAC).
According to the FAAC, VAT revenue stood at N562.685 Billion as against N497.665 Billion distributed in the preceding month.
Likewise at its July 2024 meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the committee shared a total sum of N1,354.371 Trillion to the three tiers of government as Federation Allocation for the month of June, 2024 from a gross total of N2,483.890 Trillion.
From the stated amount inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Electronic Money Transfer Levy (EMTL), Exchange Difference (ED), and an Augmentation of N200 Billion, the Federal Government received N459.776 Billion, the States received N461.979 Billion, the Local Government Councils got N337.019 Billion, while the Oil Producing States received N95.598 Billion as Derivation, (13 percent of Mineral Revenue).
The sum of N92.112 Billion was given for the cost of collection, while N1037.407 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 June 2024, was N562.685 Billion as against N497.665 Billion distributed in the preceding month, resulting in an increase of N65.020 Billion.
From that amount, the sum of N22.507 Billion was allocated for the cost of collection and the sum of N16.205 Billion given for Transfers, Intervention and Refunds. The remaining sum of N523.973 Billion was distributed to the three tiers of government, of which the Federal Government got N78.596 Billion, the States received N261.987 Billion and Local Government Councils got N183.391 Billion.
Accordingly, the Gross Statutory Revenue of N1,232.667 Trillion received for the month. From the stated amount, the sum of N68.951 Billion was allocated for the cost of collection and a total sum of N1,021.202 Trillion for Transfers, Intervention and Refunds.
The remaining balance of N142.514 Billion was distributed as follows to the three tiers of government: Federal Government got the sum of N48.952 Billion, States received N24.829 Billion, the sum of N19.142 Billion was allocated to LGCs and N49.591 Billion was given to Derivation Revenue (13% Mineral producing States).
Also, the sum of N16.346 Billion from Electronic Money Transfer Levy (EMTL) was distributed to the three (3) tiers of government as follows: the Federal Government received N2.354 Billion, States got N7.846 Billion, Local Government Councils received N5.492 Billion, while N0.654 Billion was allocated for Cost of Collection.
The Communique also disclosed the sum of N472.192 Billion from Exchange Difference, which was shared as follows: Federal Government received N224.514 Billion, States got N113.877 Billion, the sum of N87.794 Billion was allocated to Local Government Councils, N46.007 Billion was given for Derivation (13 percent of Mineral Revenue).
It further disclosed an Augmentation of N200 Billion which was shared as follows: Federal Government got N105.360 Billion, the States received the sum of N53.440 Billion, while the sum of N41.200 Billion was allocated to Local Government Councils.
Companies Income Tax (CIT) and Value Added Tax (VAT) increased significantly, while Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased marginally. Petroleum Profit Tax (PPT), Royalty Crude, Rentals and Customs External Tariff levies (CET) recorded considerable decreases.
According to the Communique, the total revenue distributable for the current month of June 2024, was drawn from Statutory Revenue of N142.514 Billion, Value Added Tax (VAT) of N523.973 Billion, N15.692 Billion from Electronic Money Transfer Levy (EMTL), N472.192 Billion from Exchange Difference and Augmentation of N200 Billion, bringing the total distributable amount for the month to N1,354.371 Trillion.
The balance in the Excess Crude Account (ECA) as at July 2024 stands at $473,754.57.
