FG Collects Over N700bn VAT -NBS

The Nigeria Bureau of Statistics, NBS has revealed an upward swing in the Value Added Tax, VAT from N550 billion in quarter one of this year to over N714 billion in quarter two.

VAT is a consumption tax paid by consumers when they buy goods and services.

According to the NBS Company Income Tax Report for Q2 2022, the bureau said local payments of N634 billion, and foreign CIT payments of N80 billion in Q2 2022 contributed immensely to the growth which it said stood at over 29 percent compared with quarter one figures.

The report said, “On the aggregate, Company Income Tax (CIT) for Q2 2022 was reported at N714.40 billion, indicating a growth rate of 29.53% on a quarter-on-quarter basis from N551.53 billion in Q1 2022. Local payments received were N634.01 billion, while Foreign CIT payment contributed N80.39 billion in Q2 2022.

“ On a quarter-on-quarter basis, the Activities of accommodation & food services recorded the highest growth rate with 481.93%, followed by Information & communication with 430.67%, and Transportation & storage with 339.08%. On the other hand, Activities of extraterritorial organizations & bodies had the lowest growth rate with – 42.59%, followed by Activities of households as employers, undifferentiated goods and services-producing activities of households for own use with -31.80%.

“In terms of sectoral contributions, the top three largest shares in Q2 2022 were Manufacturing with 27.55%; Information & communication with 24.56%, and Financial & insurance with 14.98%.

“Conversely, the Activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.004%, followed by Activities of extraterritorial organizations & bodies with 0.07%; and Water supply, sewerage, waste management & remediation activities with 0.12%. However, on a year-on-year basis, CIT collections in Q2 2022 increased by 51.34% from Q2 2021,” NBS said.