By Audrey Lotechukwu
MON, 02 NOV, 2020-theGBJournal-The latest National Bureau of Statistics (NBS) report on sectoral distribution of Value Added Tax (VAT) suggests increased efforts to boost Federal Government tax take.
It also reflects the impact (within a short period) of the Finance Act 2020 which among others, is targeted at raising additional revenue for the Government through the introduction of new fiscal measures, including the increase in Value Added Tax (VAT) rate from 5% to 7.5%.
The Finance Act was signed into law on 13 January 2020, by President Muhammadu Buhari.
The NBS report published on Saturday shows that the sum of N424.71bn was generated as VAT in Q3 2020 as against N327.20bn generated in Q2 2020 and N275.12bn generated in Q3 2019 representing 29.80% increase Quarter-on-Quarter and 54.37% increase Year-on-Year.
Other Manufacturing generated the highest amount of VAT with N47.07bn generated and closely followed by Professional Services generating N44.01bn, Commercial and Trading generating N21.18bn while Mining generated the least and closely followed by Textile and Garment Industry and Pharmaceutical, Soaps & Toiletries with N64.50mln, N346.27mln and N386.16 mln generated respectively.
Out of the total amounted generated in Q3 2020, N214.66bn was generated as Non-Import VAT locally while N115.34bn was generated as Non-Import VAT for foreign.
The balance of N94.70bn was generated as NCS-Import VAT, according to the NBS.
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