VAT REVENUE MAY INCREASE 9.74% IN 2017

Nigeria's revenue from value added tax (VAT) may grow by about 9.74% this year to N853,208.75m, all things being equal.

According to the National Bureau of Statistics (NBS) latest report on sectoral distribution of Vat inflow in Nigeria, total revenue from it grew by 2.38% to N777,504.7m in 2016 with first quarter of the year contributing 24% or N186,428.2m.

Meanwhile, total Vat revenue in 2015 was N759432.7m with the first quarter of the year being responsible for 25.9% or N196,706.9m.

Now, the first quarter of 2017 recording N204,770.1m, according to the NBS, the possibility is that as a % share of the total, it should be in the range of 24% and 25%. Meaning the full year figure should be in the neighbourhood of N853,208.7m all things being equal.

According to NBS, the 2017 first quarter figure was down 1.25% on quarter 4, 2016 but 9.84% higher than same period in 2016.

It actually represents the second quarter since 2015 that a drop will be recorded. The first was in quarter 4 of 2015 which saw Vat revenue dropping by 6.94% to N179,168.2m after growing quarterly before then.

All through 2016, it then grew quarterly hitting highest quarterly growth 24% in the second quarter then coasting through the rest of the year with about 5% growth per quarter.

Despite the slight drop by 2017 first quarter, top growths were still recorded in inflow from sectors like Agriculture up 106.63% to N554.9m; Printing, publishing and paper up 81.56% to N872mand State ministries and parasatals up 27.36% to N11,211.5m.

When compared to 2016 quarter 1, top growths in inflow were recorded in pioneering up 392.1% to N979.9m; publishing, printing and paper up 154.99%; petrochemical and refineries, 101% to N1,494.6m, mining from which inflow grew by 50.46% to N35.1m and Building and construction, up 50.22%.

In terms of quantum contribution top of the sectors within the quarter was Other Manufacturing with N28,728.1m, or 14% of the total; professional services with 10.2% or N20,817.3m and Commercial and trading from which N12,898.7m or 6.30% was realised from Vat.

However, Vat realised from var on imports continued to account for top share of total. In 2017 1st quarter it accounted for 22.7% or N46,408.6m compared to 20.6% share in 2016 1st quarter and 24% in quarter 4.

The sectors covered by the NBS report totalled 28 and none of them recorded quarterly increase consistently since 2015 and indeed, all of them recorded drops in 2015 quarter 2 and all recorded growth in quarter 1 2016.

In the first quarter of 2017, 10 of them recorded decline on previous quarter in flows.

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