Nigerians pay N496.39bn in VAT in Q1 2021

VAT in Q1 2021

Nigerians pay N496.39bn in VAT in Q1 2021


 

Nigerians consuming various goods and services in the country paid Value Added Tax (VAT) estimated at N496.39 billion to the coffers of the government in the first quarter of 2021.

This is according to Sectoral Distribution of VAT for Q1 2021 report published Saturday by the National Bureau of Statistics (NBS).

According to the report, the figure rose by N41.7 billion in quarter under review from as against N454.69 billion generated in the preceding Q4 of 2020 and N171.81 billion higher than N324.58 billion generated in Q1 of 2020.

According to the bureau, the increase represents 9.17 per cent increase quarter-on-quarter and 52.93 per cent increase year-on-year.

A value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally.

It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer.

VAT in Q1 2021
The NBS report said that of the total amount generated in Q1 of 2021, N224.85 billion was generated as non-import VAT locally, while N171.66 billion was generated as non-import VAT for foreign.

It added that the balance of N99.88 billion was generated as Nigeria Customs Service-import VAT.

The NBS said that manufacturing generated the highest amount of VAT – N49.41 billion – closely followed by professional services which generated N42.50 billion.

“State ministries and parastatals generated N26.96 billion, while mining generated the least with N48.36 million.

According to NBS, mining is closely followed by pioneering and textile with N77.01 million, and garment industry with N289.41 million.”

The bureau said that the data was provided by the Federal Inland Revenue Service and verified and validated by NBS.