The National Bureau of Statistics (NBS) said the federal government generated N625.39 billion as Value Added Tax (VAT) in the third quarter of 2022.
The Bureau disclosed this in its “Sectoral Distribution of Value Added Tax data for Q3 2022, released on Monday.
According to the bureau, the figure represents a growth rate of 4.21 per cent quarter-on-quarter basis from N600.15 billion in Q2 2022 and a 24.95 per cent increase year-on-year from Q3 2021.
It said on a quarter-on-quarter basis, the Arts, entertainment, and recreation supply activities recorded the highest growth rate with 61.09 per cent, followed by activities of extraterritorial organizations and bodies with 44.47 per cent.
“On the other hand, activities of households as employers, undifferentiated goods and services-producing activities of households for own use had the lowest growth rate with –56.37 per cent, followed by water supply, sewerage, waste management, and remediation activities with –32.02 per cent,” the report said.
Out of the total amount generated it said local payments recorded were N367.93 billion, Foreign VAT Payments were N121.85 billion, while import VAT contributed N135.61 billion in Q3 2022.
In terms of sectoral contributions, the report said the top three largest shares in Q3 2022 were manufacturing at 31.08 per cent, information and communication at 18.52 per cent and mining & quarrying at 10.95 per cent.
Conversely, the NBS said activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.01 per cent, followed by activities of extraterritorial organizations and bodies with 0.06 per cent and water supply, sewerage, waste management, and remediation activities with 0.08 per cent.
VAT is a consumption tax which is administered by the Federal Inland Revenue Service (FIRS).
It was introduced in Nigeria with the enactment of VAT Act No. 102 of 1993, which replaced the Sales Tax, which had been in operation since 1986 by virtue of the Federal Government Decree No. 7 of 1986.
VAT used to be five per cent. However, on 13 January 2020, it was revised to 7.5 per cent after President Muhammadu Buhari signed the Finance Act 2020 into law.
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