The Federal Government Earns N1.56 Trillion Vat In The Second Quarter Of 2024, According To The National Bureau Of Statistics (Nbs).

The Federal Government’s total collection from Value Added Tax (VAT) in the second quarter of 2024 amounted to N1.56 trillion, marking a 9.11% increase compared to the first quarter’s N1.43 trillion, according to a VAT revenue report by the National Bureau of Statistics (NBS).

Leading sectors contributing to VAT collection were Manufacturing, Information, and Communication, which accounted for 11.78%, followed by Information and Communication with 9.02%, and Mining and Quarrying with 8.79%.

In Q2 2024, local payments amounted to N792.58 billion, Foreign VAT Payments reached N395.74 billion, and import VAT contributed N372.95 billion.

On a quarter-on-quarter basis, the sectors experiencing the highest growth rate in VAT collection were human health and social work activities with 98.44%, agriculture, forestry, and fishing with 70.26%, and water supply, sewerage, waste management, and remediation activities with 59.75%.

Conversely, 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 the NBS, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use accounted for the smallest share with 0.00%, followed by activities of extraterritorial organizations and bodies with 0.01%, water supply, sewerage, waste management, and remediation activities, and real estate services with 0.04% each.

VAT collections in Q2 2024 witnessed a significant year-on-year increase of 99.82% compared to Q2 2023.

The Government has denied reports of plans to raise the current VAT rate of 7.5% to 10%. Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stated that the VAT rate remains at 7.5% as stipulated in relevant tax laws.

Furthermore, the Minister clarified that the government and its agencies are committed to complying with the legal provisions and will not act contrary to them.


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