VAT Revenue Hits ₦166.228bn As FG, States, LGs Share ₦696.965bn

VAT
  • The communique indicated that total revenue distributable for the month included gross statutory revenue of ₦477.504 billion, VAT of ₦166.228 billion

The Federation Accounts Allocation Committee (FAAC) has shared a total of ₦696.965 billion as federation allocation for the month of August.

Oshundun Olajide, a Deputy Director of Information at the Office of Accountant General of the Federation (OAGF), disclosed this in a statement signed on Thursday.

This comes as the nation records a significant increase in the collection of Value Added Tax (VAT) and import duty, amid the lingering controversy over whose responsibility it is to collect VAT.

A series of court cases and rulings emerged recently as the Rivers State government, backed by Lagos and some other states, challenge the legality of the Federal Inland Revenue Service (FIRS) to collect VAT.

Olajide stated that FAAC held a virtual conference on Wednesday where it shared the sum to the three tiers of government.

“From this amount, inclusive of Value Added Tax (VAT), Exchange Gain, Excess Bank Charges and Revenue from non-oil, the Federal Government received ₦289.257 billion, the states received ₦217.183 billion, the local government councils got ₦161.541 billion, while the oil-producing states received ₦41.376 billion as derivation (13 per cent of mineral revenue),” the statement read.

The communique issued at the end of the meeting indicated that the gross revenue available from the Value Added Tax (VAT) for August was ₦166.228 billion.

Read also: House Of Reps Passes Bill For States To Collect VAT

According to it, the Federal Government got ₦24.934 billion of the revenue generated from VAT, while the states and local government councils (LGCs) received ₦83.114 billion and ₦58.180 billion respectively.

“The sum of ₦50 billion from non-oil revenue was equally distributed accordingly to the three tiers of government as follow – the Federal Government received ₦26.340 billion; the states got ₦13.360 while the LGCs received ₦10.3 billion.

“The distributed statutory revenue of ₦477.504 billion was received for the month from which the Federal Government received ₦236.437 billion, states got ₦119.924 billion, LGCs got ₦92.4456 billion, and derivation (13 per cent mineral revenue) got ₦28.687 billion,” the statement added.

It revealed that Companies Income Tax (CIT), Petroleum Profit Tax (PPT), oil and gas royalties, and excise duty recorded decreases, while import duty and VAT increased significantly.

The communique indicated that total revenue distributable for the month included gross statutory revenue of ₦477.504 billion, VAT of ₦166.228 billion, exchange gain of ₦2.830 billion, excess bank charges recovered of ₦0.403 billion, and ₦50 billion from non-oil revenue.

This brings the total distributable revenue to ₦696.965 billion for the month of August.

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