September 3, 2022

Earnings from VAT rise 19%, hit N1.19 trn


By Elizabeth Adegbesan

Nigeria generated N1.19 trillion from Value Added Tax (VAT) in the first half of the year (H1’22). This represents a 19 per cent year-on-year (YoY) rise when compared to N1 trillion earned in H1’21.

Data contained in the National Bureau of Statistics (NBS) VAT report for the second quarter of the year, Q2’22, released today, showed that local payments recorded were N703.16 billion, representing a 70.5 percent YoY rise from N412.28 billion in H1’21.

The data also showed that  foreign VAT payment contributed N229.11 billion, down YoY by 39.6 percent from N379.33  billion in H1’21.

On a quarterly basis, the bureau said that VAT rose by 1.96 per cent to N600.15 billion in Q2’22 from N588.59 billion in Q1’22.

NBS said:” On the aggregate, VAT for Q2′ 22 was reported at N600.15 billion, showing a growth rate of 1.96 percent on a quarter-on-quarter (QoQ) basis from N588.59 billion in Q1’22. 

“Local payments recorded were N359.12 billion, while Foreign VAT Payment contributed N111.13 billion in Q2’22. 

“On a QoQ basis, Electricity, gas, steam and air conditioning supply recorded the highest growth rate with 116.47 per cent, followed by Accommodation and food service activities with 42.44 percent . 

“On the other hand, Activities of extraterritorial organizations and bodies had the lowest growth rate with –42.39 per cent, followed by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with –36.57 percent . 

“In terms of sectoral contributions, the top three largest shares in Q2’22 were Manufacturing with 33.08 percent; Information and communication with 18.9 percent; and Mining & quarrying with 10.6 percent . 

“Conversely, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.03 percent, followed by Activities of extraterritorial organizations and bodies with 0.05 percent; and Water supply, sewerage, waste management and remediation activities with 0.13 percent . “However, on a YoY basis, VAT collections in Q2’22 increased by 17.16 percent from Q2’21.”