Manufacturing, ICT Sector Revenue Push VAT Collection To N1.43trn Q1, 2024
Analysis of the report put local payments at N663.18 billion, Foreign VAT Payments at N435.73 billion, while import VAT contributed N332.01 billion in Q1 2024.
The 26.72 per cent contribution of the manufacturing sector to Value Added Tax collection (VAT) in the first quarter of 2024 leapt VAT revenue accruals in the period to N1.43 trillion on the aggregate.
This, according to a report released on Tuesday by the National Bureau of Statistics (NBS) aided the VAT growth rate to 19.21% on a quarter-on-quarter basis from N1.20 trillion in Q4 2023.
This was followed closely by Information and Communication ( ICT) with 17.42%; and mining & quarrying activities with 15.42%.
Analysis of the report put local payments at N663.18 billion, Foreign VAT Payments at N435.73 billion, while import VAT contributed N332.01 billion in Q1 2024.
Further breakdown of contribution to VAT on a quarter-on-quarter basis, indicated accommodation and food service activities recorded the highest growth rate with 59.15%, followed by the activities of administration and support with 47.79%.
On the other hand, activities of extraterritorial organizations and bodies had the lowest growth rate with –57.01%, followed by Human health and social work activities with –27.73%.
“Nevertheless, activities of households as employers, undifferentiated goods- and services producing activities of households for own use recorded the least share with 0.01%, followed by activities of extraterritorial organizations and bodies with 0.03% and water supply, sewerage, waste management, and remediation activities with 0.05%.
However, on a year-on-year basis, VAT collections in Q1 2024 increased by 101.65% from Q1 2023”, NBS disclosed in the report.
Relatedly, the Bureau put aggregate, Company Income Tax (CIT) for Q1 2024 at N984.61 billion, indicating a growth rate of –12.87% on a quarter-on-quarter basis from N1.13 trillion in Q4 2023.
Local payments received were N386.49 billion, while Foreign CIT Payment contributed N598.13 billion in Q1 2024.
On a quarter-on-quarter basis, activities of households as employers, undifferentiated goods- and services-producing activities of households for their own use recorded the highest growth rate with 330.42%, followed by administrative and support service activities with 33.18%.
On the other hand, activities of manufacturing had the lowest growth rate with –70.24%, followed by electricity, gas, steam and air conditioning supply with –69.14%.
In terms of sectoral contributions, the top three largest shares in Q1 2024 were mining and quarrying with 20.94%; financial and insurance activities with 18.73%; and Information and communication with 12.56%.
Nevertheless, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.02%, followed by Water supply, sewerage, waste management, and remediation activities with 0.07% and activities of extraterritorial organization and bodies with 0.24%.
However, on a year-on-year basis, CIT collections in Q1 2024 increased by 109.93% from Q1 2023.
