Nigerians pay N427.71bn VAT to govt in Q4 2020

Nigerians pay N427.71bn VAT to govt in Q4 2020

The Aggregate Value Added Tax (VAT) paid by Nigerians to the government in the fourth quarter of 2020 (Q4 2020) stood at N454.69 billion, N29.98 billion higher than N424.71 billion recorded in the previous quarter, Q3 2020.

This is disclosed by the National Bureau of Statistics (NBS) in its “Sectoral Distribution of Value Added Tax (Q4 2020)” obtained from its website on Wednesday.

The bureau said the figure represented 7.06 per cent increase Quarter-on-Quarter and 47.39 per cent increase Year-on-Year from the N308.48 billionn generated in Q4 2019.

The report indicated that professional services generated the highest amount of VAT with N42.38 billion generated and closely followed by other manufacturing generating N39.45 billion, while commercial and trading generated N21.15 billion.

“Mining generated the least with N58.88 million and closely followed by pioneering and textile which generated N185.72 million, while the garment industry generated N353.75 million.

“Out of the total amount generated in Q4 2020, N212.52 billion was generated as Non-Import VAT locally while N143.35 billion was generated as Non-Import VAT for foreign.

“The balance of N98.81 billion was generated as Nigeria Customs Service-Import VAT”, it added.

Meanwhile, for Company Income Tax (CIT) by sectors for the period under review was on the low side relative to the previous quarter and the comparative quarter of 2019.

The NBS stated that N295.72 bilion was generated as CIT in the three-month period, compared with N416.01 billion generated in the third quarter.

It added that the figure represented -28.91 per cent decrease Quarter-on-Quarter and -18.31 per cent decrease Year-on-Year from the N362.01 billion generated in Q4 2019.

According to it, professional services, including telecoms, generated the highest amount of CIT with N32.17 billion generated.