Home Money Nigeria’s VAT grows 8.45% in H12020

Nigeria’s VAT grows 8.45% in H12020

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MON, JULY 27 2020-theG&BJournal– Like all of Nigeria’s income generating streams, the Federal Inland Revenue Services (FIRS) has been watching the sectoral distribution of Value Added Tax (VAT) with trepidation, especially with the coronavirus pandemic outbreak and its attendant impact on overall impact on the country’s income.

Recently it turned its gaze on stamp duties on everything from certificate of occupancy to deed of assignment, marketable securities, joint venture agreements, valuation of properties and many more.

But the latest sectoral distribution of Value Added Tax (VAT) data for H1 2020 published over the weekend by the National Bureau of Statistics (NBS) should relax nerves.

The VAT data showed an 8.45% growth Year-on-Year to N651.77bn in H1 2020 as against N600.98bn generated in H1 2019.

According to the NBS data, out of the total amounted generated in H1 2020, N335.82bn was generated as Non-Import VAT locally while N161.74bn was generated as Non-Import VAT for foreign. The balance of N154.21bn was generated as NCS-Import VAT.

Professional Services generated the highest amount of VAT with N95.92bn, closely followed by other Manufacturing generating N67.63bn, Commercial and Trading generating N31.10bn while Mining generated the least and closely followed by Textile and Garment Industry and Pharmaceutical, Soaps and Toiletries with N127.58m, N499.19m and N648.78m respectively.

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