Nigeria’s VAT collection jump by 1.75% in Q1 2023
Nigeria’s Value Added Tax (VAT) collection rose by 1.75% on a quarter-on-quarter basis, reaching N709.59 billion in Q1 2023 with manufacturing sector accounting for largest share of VAT collection in Q1 2023 at 29.65%.
Information and communication technology followed with a share of 19.29%, while mining and quarrying contributed 12.24% to VAT collection during the same period.
Nigeria’s Value Added Tax (VAT) recorded a quarter-on-quarter increase of 1.75%, rising from N697.38 billion in Q4 2022 to N709.59 billion in the first quarter of 2023.
This data was revealed in the recently released VAT Q1 2023 report by the National Bureau of Statistics on Tuesday. The report also highlighted the sectors that contributed the most to VAT collection during this period, with manufacturing leading at 29.65%, followed by information and communication at 19.29%, and mining and quarrying at 12.24%.
According to the report, Value Added Tax (VAT) for Q1 2023 was reported at N709.59 billion, showing a growth rate of 1.75% on a quarter-on-quarter basis from N697.38 billion in Q4 2022, they added:
“Local payments recorded were N436.10 billion, Foreign VAT Payments were N151.13 billion, while import VAT contributed N122.37 billion in Q1 2023.
“On a quarter-on-quarter basis, the activities of households as employers, undifferentiated goods- and services producing activities of households for own use recorded the highest growth rate of 349.86%, followed by construction with 95.64%.”
Activities
NBS noted that the activities of extraterritorial organizations and bodies had the lowest growth rate with –53.54%, followed by real estate activities with –47.01%, as manufacturing contributed the most, they said:
“In terms of sectoral contributions, the top three largest shares in Q1 2023 were manufacturing with 29.65%; information and communication with 19.29%; and mining & quarrying with 12.24%.
“Conversely, activities of extraterritorial organizations and bodies recorded the least share with 0.02%, followed by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 0.03%; and water supply, sewerage, waste management, and remediation activities with 0.04%.”
They revealed that on a year-on-year basis, VAT collections in Q1 2023 increased by 20.56% from Q1 2022.
This was as Company Income Tax (CIT) also recorded growth Q1 2023, netting N469.01 billion. This showed growth rate of -37.79% on a quarter-on-quarter basis from N753.88 billion in Q4 2022.
Local payments were N300.78 billion, while Foreign CIT Payment contributed N168.23 billion in Q1 2023.
On a quarter-on-quarter basis, the financial and insurance activities recorded the highest growth rate with 50.42%, followed by construction with 42.32%.
On the other hand, water supply, sewerage, waste management, and remediation activities had the lowest growth rate with – 69.38%, followed by other service activities with -60.13%. In terms of sectoral contributions, the top three largest shares in Q1 2023 were financial & insurance activities with 22.94%; manufacturing with 20.91%; and information and communication with 11.89%.
Conversely, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01%, followed by water supply, sewerage, waste management, and remediation activities with 0.04%; and activities of extraterritorial organizations and bodies with 0.12%. However, on a year-on-year basis, CIT collections in Q1 2023 decreased by 14.96% from Q1 2022.
