VAT REVENUE INCHES UP BY 2.5% IN Q3’18
A total of N273.5 billion was generated by the Federal Inland Revenue Service, FIRS, as Value Added Tax (VAT) for the third quarter 2018, Q3’18. This, according to the report of the National Bureau of Statistics (NBS) released yesterday, represents 9.16 percent year-on-year (YoY) increase on the N269.79 billion generated in the same period in 2017 and 2.5 percent quarter-on-quarter (QoQ) increase against N266.73 billion in Q2’18.
Breakdown of sectorial contribution to the total VAT showed that N31.48 billion was generated through manufacturing sector, representing 11.5 percent of the total VAT revenue in Q3’18. This was closely followed by professional services and commercial and trading sectors with both sectors generating N25.57 billon and N15.99 billion which represent 9.3 percent and 5.8 percent of the total generated amount respectively.
Breweries, bottling & beverages sector, placed fourth, accounting for N7.83 billion or 2.9 percent of the total VAT; N7.35 billion, representing 2.7 percent was pulled from oil sector; banks and financial institutions accounted for N4.52 billion, while the building & construction sector followed the next with total contribution of N2.38 billion. Others are oil marketing, N1.75 billion; gas, N1.39 billion; hotel and catering, N1.19 billion and conglomerates, N1.04 billion.
Conversely, the mining sector generated the least, trailed closely behind by pharmaceutical, soaps & toiletries and textile and automobiles & assemblies sectors with N52.70 million, N177.34 millon and N265.35 million VAT contributions respectively. The chemical, paints & allied industries polled N393.04 million in VAT; agricultural and plantation recorded N722.40 million VAT contribution, while N 978.45 million was generated via petrochemical and petroleum refineries sector during the period under review.
Further breakdown showed year-on-year, most of the sectors recorded appreciable increase in the value of tax generated while QoQ, VAT generation dulled for most of the sectors as the amount generated lagged compare to the preceding quarter in 2018 (Q2’18). The report showed that the mining sector recorded the highest YoY increase of 54.40 percent, while QoQ, its tax generation rose by 10.14 percent.
agricultural and plantation sector’s VAT rose by 42.17 percent within the one year period; commercial and trading was up 42.25 percent; automobiles & assemblies’ VAT contribution increased by 39.05 percent, while hotel & catering sector recorded 39.04 percent YoY increase.