National Bureau of Statistics in its latest sectoral distribution of value-added tax for the second quarter of the year 2022, said Nigeria generated the sum of N600.15 billion Naira as Value-added tax, VAT. The figure represents a slight increase of 1.96% from the N588.59 billion recorded in the first quarter of the year.
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According to the report, local payments of VAT amounted to N359.12 billion for the second quarter.
“Local payments recorded were 359.12 billion, while foreign VAT payment contributed N111.13 billion in Q2 of 2022.
“On a quarter-on-quarter basis, electricity, gas, steam and air conditioning supply recorded the highest growth rate with 116.47%, followed by accommodation and food service activities with 42.44%” the report reads in part.
What else did it say?
The report also added that activities of extraterritorial organizations and bodies had the lowest growth rate with -42.39%, followed by activities of households as employers, undifferentiated good-and-services producing activities of households for own use with -36.57%.
However, on a year-to-year basis, VAT collections in the second quarter of 2022 increased by 17.16% when compared to what was recorded in the same quarter in 2021.
How did each sector perform?
According to the report, on a sectoral contribution, the top three largest shares in Q2 of 2022 were manufactured with 33.08%; information and communication with 18.98%; and mining and quarrying with 10.60%.
On the contrary, activities of the household as employers, undifferentiated goods-and-services-producing activities of households for own use recorded the least share with 0.03%, followed by activities of extraterritorial organizations and bodies with 0.05% and water supply, sewerage, waste management, and remediation activities with 0.13%.
What you should know
VAT is a consumption tax administered by the Federal Inland Revenue Service, FIRS. Revenue generated through VAT is usually disbursed to the federal, state, and local governments through the Federation Accounts and Allocation Committee, FAAC. The 7.5% VAT rate became effective on February 1, 2020.