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VAT Revenue Rises By 19.21% To N1.43trn In Three Months—NBS

The National Bureau of Statistics (NBS) on Tuesday said the Federal Inland Revenue Service (FIRS) realised the sum of N1.43trn from Value Added Tax (VAT) in the first three months of 2024.

This represents an increase of 19.21 per cent on a quarter-on-quarter basis from N1.20trn realised in the fourth quarter of 2023.

Recall that the World Bank and IMF had urged the federal government to increase the VAT rate from the current 7.5 per cent to 10 per cent by 2025 and 15 per cent by 2026 to boost non-oil sectorial development.

According to the VAT report released by NBS calculated with the current 7.5 per cent rate, revenue from VAT, rose by 101.52 per cent against the N709.59bn recorded on a year-on-year basis.

Further breakdown of the reports revealed that VAT revenue from local payments was N663.18 bn, foreign VAT Payments stood at N435.73 bn, while import VAT contributed N332.01bn.

On quarter-on-quarter basis, the highest growth rates were recorded in accommodation and food service activities at 59.15 per cent, followed by administrative and support activities at 47.79 per cent.

The lowest growth rates were generated in extraterritorial organizations and bodies, followed by human health and social work activities at -27.73 per cent.

In terms of sectoral contributions, the top three largest shares in Q1 2024 were Manufacturing with 26.72 per cent; Information and Communication with 17.42 per cent; and Mining & Quarrying activities with 15.42 per cent.

Subsequently, 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.

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