N797bn VAT Revenue Recorded in 10 months – Adeosun.
The Federation Account recorded a revenue inflow of N797.51bn from Value Added Tax between January and October this year, the Minister of Finance, Mrs. Kemi Adeosun, has said.
Adeosun, who released the details on Tuesday in Abuja, noted that the highest VAT collection of N86.71bn was achieved in September.
She added that the sums of N84.67bn and N83.315bn were recorded in May and October, respectively.
On the other hand, the Minister explained that March experienced the lowest VAT earning of N69.20bn
The framework under which VAT is administered allows the Federal Government to get 15 per cent of VAT revenue, while the States and Local Governments received 50 per cent and 35 per cent, respectively.
The Finance Minister reiterated the Federal Government’s commitment to aggressively growing the tax revenue base in order to drive economic growth.
She said, “Revenue mobilization is key to National growth and critical to the success of Nigeria’s economic reform agenda. We have an unacceptably low level of non-oil revenue and much of that is driven by a failure to collect Tax revenues.
“With a Tax to Gross Domestic Product ratio of only six per cent, which is one of the lowest levels in the world, we have a lot of work to do if we are going to build a sustainable revenue base that will deliver inclusive growth. Improving VAT and other Tax collections is key to Nigeria’s revenue strategy.”
She gave an assurance that the Federal Government would continue to collaborate with State Governments as part of its determined efforts to grow the non-oil revenue base, including raising the VAT collection to N100bn monthly.
The Government, she added, would also extend its Tax compliance to the private sector as well as intensify efforts in ensuring that the Ministries, Departments and Agencies were Tax complaint.