The National Bureau of Statistics (NBS) yesterday released Value Added Tax (VAT) figures for the third quarter ended September 2017. Here are highlights from the report.
- N250.56bn was generated as VAT in Q3 2017 as against N246.30bn generated in Q2 2017 and N196.70bn in Q3 2016 representing 1.73% Increase Quarter-on-Quarter and 27.39% increase Year-on-Year.
- Manufacturing generated the highest VAT revenue at N28.98 billion.
- Mining generated the least amount at N33.70 million.
- Year to date, a total of N701 billion has been collected up 23%.
VAT collection has improved massively
The figures show that collection has improved massively. Manufacturing generated the highest revenue despite the economy emerging from recession. From all indications, 2017 year end revenue may surpass 2015 and 2016 collections. Nigeria earned a total of N759 billion in 2015 and N777 billion in 2016 respectively from VAT.
2018 may be an even more productive year
Minister of Finance, Kemi Adeosun at an event held recently in Abuja, hinted at an even more aggressive tax collection policy.
Revenue mobilisation is key to national growth and critical to the success of Nigeria’s economic reform agenda. We have an unacceptably low level of non-oil revenue and much of that is driven by a failure to collect tax revenues.
Nigeria currently has one of the lowest tax to GDP ratios in Africa, and is heavily dependent on crude oil revenue. A sharp drop in oil prices last year, pushed the country’s economy into recession, and forced the government to embark on massive borrowing.
Here is a link to the report.