VAT grows 1.96% in Q2, hits N600bn

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BY BAMIDELE FAMOOFO

Uba Group

On the aggregate, Value Added Tax for Q2 2022 was reported at N600.15 billion, showing a growth rate of 1.96 percent on a quarter-on-quarter basis from N588.59 billion in Q1 2022.

Local payments recorded were N359.12 billion, while Foreign VAT Payment contributed N111.13 billion in Q2 2022. On a quarter-on-quarter basis, Electricity, gas, steam and air conditioning supply recorded the highest growth rate with 116.47 percent, followed by Accommodation and food service activities with 42.44 percent.

On the other hand, Activities of extraterritorial organizations and bodies had the lowest growth rate with –42.39 percent, followed by Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with –36.57 percent. In terms of sectoral contributions, the top three largest shares in Q2 2022 were manufacturing with 33.08 percent; Information and communication with 18.98 percent; and Mining & quarrying with 10.60 percent.

Conversely, Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.03 percent, followed by Activities of extraterritorial organizations and bodies with 0.05 percent; and Water supply, sewerage, waste management and remediation activities with 0.13 percent. However, on a year-on-year basis, VAT collections in Q2 2022 increased by 17.16 percent from Q2 2021.