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Published On: Mon, Jan 8th, 2018

FG rakes in N909bn from VAT in one year

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From Ngozi Onyeakusi, Lagos

The National Bureau of Statistics (NBS) has disclosed that the federation account received a total inflow of N908.9 billion in Value Added Tax receipts from the Federal Inland Revenue Service, between October 2016 and September 2017.
The said amount was collected from 28 sectoral activities within the period with the manufacturing sector generating the highest amount of VAT revenue to the tune of N115.76bn .
A breakdown of the amount showed that the sum of N207.35bn was generated in the fourth quarter of 2016, while the first, second and third quarters of 2017 had N204.77bn, N246.3bn and N250.56bn, respectively.
According to a report signed by the Statistician General of the Federation and Chief Executive, NBS, Dr. Yemi Kale, the bureau further disclosed that the manufacturing sector was closely followed by professional services and oil producing sectors with both generating N83.76bn and N47.6bn respectively.
The Minister of Finance,Mrs. Kemi Adeosun, had said that 55 per cent of the revenue generated by the Federal Government from VAT receipts was collected from Lagos State.
Adeosun, had during a meeting with progressive governors forum explained that the balance of 45 per cent are generated from the remaining 35 states of the Federation and the Federal Capital Territory.

Giving a breakdown of the receipts from VAT, she said while Lagos accountedfor 55 per cent of VAT revenue, 20 per cent came from the FCT.
She added that Rivers, Kano and Kaduna states accounted for six per cent, five per cent and one per cent, respectively.
Cumulatively, she noted that these four states including the FCT accounted for 87 per cent of the entire collections from VAT.
She described the tax compliance rate in the country as very low, adding that this was why the Federal Government was taking proactive steps to improve the rate of voluntary tax compliance.
She said,“There is no poor country that has a high tax compliance rate, and no rich country that has a low one.

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