BREAKING: FG Earns N1.56trn From VAT In Q2, 2024

FG earned N1.56trn from VAT in Q2, 2024.

 

NewsOnline Nigeria reports that the Federal Government’s aggregate receipt of the Value Added Tax ( VAT) Q2 2024 stood at N1.56 trillion, indicating a growth rate of 9.11% on a quarter-on-quarter basis from N1.43 trillion in Q1 2024, according to VAT revenue report from the National Bureau of Statistics NBS.

 

The Manufacturing, Information and Communication ranked top in VAT contribution recording 11.78%; information and communication with 9.02% and Mining and quarrying with 8.79% respectively.

 

Of the amount, local payments recorded were N792.58 billion, Foreign VAT Payments N395.74 billion, while import VAT contributed N372.95 billion in Q2 2024.

 

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On a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate with 98.44%, followed by agriculture, forestry and fishing with 70.26%, and Water supply, sewerage, waste management and remediation activities with 59.75%.

 

Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –46.84%, followed by real estate activities with –42.59%.

 

According to NBS, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00%, followed by Activities of extraterritorial organizations and bodies with 0.01%; and Water supply, sewerage, waste management and remediation activities with and Real Estate Services 0.04% each.

 

On a year-on-year basis, VAT collections in Q2 2024 increased by 99.82% from Q2 2023.

The Government has debunked news making rounds of plans to hike the current VAT rate from 7.5 per cent to 10 per cent. Minister of Finance, Wale Edun.

 

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun confirmed the position in a statement issued on Monday. He affirmed that the VAT rate as contained in relevant tax laws and chargeable on goods and services remains 7.5%.

“The current VAT rate is 7.5% and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.