The sum of N298.01 billion was realised as Value Added Tax (VAT) in the fourth quarter of 2018 as against N273.50bn generated in Q3 2018 and N266.73bn in Q2 2018, data sourced from National Bureau of Statistics (NBS) revealed.
The figure represents 8.96% Increase Quarter-on-Quarter and 17.28% Year-on-Year.
Broken into sector by sector, other manufacturing generated the highest amount of VAT with N28.82 billion generated and closely followed by Professional Services and commercial and trading both generating N24.12bn and N16.02 billion respectively.
Mining generated the least and closely followed by Pharmaceutical, Soaps & Toiletries and Chemical, Paints and Allied Industries with N35.75 million, N209.33 million and N258.39 million generated respectively.
Out of the total amount generated in Q4 2018, N138.42 billion was generated as non-import VAT locally while N47.89 billion was generated as none import VAT for foreign. The balance of N111.71 billion was generated as NCS-import VAT.
The federal government is currently mulling an increase in VAT from its current 5 percent to a rate yet to be decided. Minister of finance, Hajiya Zainab Ahmed gave the hint last December, saying the government would come up new revenue measures that will target on
”I want to take the opportunity to say that, the ministry of finance our current focus is on revenue. We have to mobilize more domestic revenue so that we can better fund our budget. You can see from the performance that there is gap between what is grant in the budget and what is actually generated. So we are doing what we can, and very soon we will be generating new revenue initiatives which will include a new set of taxes and excise duties. We would be working with FIRS and Customs on new and enhanced measures for enforcement and compliance”.
”We might be having to go to the National Assembly to amend some laws that we identified to have some gaps, some loopholes. We are doing every thing we can to make sure our budget are better funded going forward and it will start from 2019″, said Zainab.
The Minister said the government had yet to take a decision on new VAT rate adding that it requires sending an executive bill to National Assembly for an amendment.