VAT: FG generates N651.77bn in H1 2020
Despite a struggling economy triggered by the Covid-19 pandemic, the Federal Government generated N651.77 billion as Value Added Tax, VAT, in the first half of 2020.
National Bureau of Statistics, NBS, disclosed this in its report on Sectoral Distribution of Value Added Tax - H1 2020, released last week.
According to the bureau, the amount is over N51 billion above the VAT generated during the same period in 2019.
The high VAT return is not unconnected with the February 1, 2020 implementation of the 7.5 per cent increased VAT from 5 per cent.
“Sectoral distribution of Value Added Tax (VAT) data for H1 2020 reflected that the sum of N651.77bn was generated as VAT in H1 2020 as against N600.98bn generated in H1 2019. This represents 8.45% growth Year-on-Year.
NBS disclosed that “professional Services generated the highest amount of VAT with N95.92bn generated and 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 generated respectively.
It said “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.