VAT hits N1.78trillion in Q3 2024

In the third quarter of 2024 (Q3 2024) Value Added Tax (VAT) rose by 14.16 per cent to N1.78 trillion.

The National Bureau of Statistics (NBS) disclosed this in its report titled: “VAT Q3 2024.”

The report recalled that it rose from the N1.56 trillion of the second quarter of 2024.

NBS said, “On the aggregate, Value Added Tax (VAT) for Q3 2024 was reported at N1.78 trillion, showing a growth rate of 14.16% on a quarter-on-quarter basis from N1.56 trillion in Q2 2024.”

The document said local payments recorded were N922.87 billion, Foreign VAT Payments were N448.85 billion, while import VAT contributed N410.62 billion in Q3 2024.

It said on a quarter-on-quarter basis, Human heath and social work activities recorded the highest growth rate with 250.39%, followed by the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 102.09%.

NBS added that Water supply, sewerage, waste management and remediation activities had the least growth rate with –41.92%, followed by activities of extraterritorial organizations and bodies with –36.14%.

Continuing, the report said “In terms of sectoral contributions, the top three largest shares in Q3 2024 were Manufacturing with 22.21%; Information and Communication with 20.89%; and Mining & Quarrying activities with 18.90%.

“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 0.01% and Water supply, sewerage, waste management, and remediation activities with 0.03%. “However, on a year-on-year basis, VAT collections in Q3 2024 increased by 88.00% from Q3 2023.”

Similarly, the Bureau said on the aggregate, Company Income Tax (CIT) for Q3 2024 was reported at N1.77 trillion, indicating a growth rate of –28.20% on a quarter-on-quarter basis from N2.47 trillion in Q2 2024.

NBS said local payments received were N920.91 billion, while Foreign CIT Payment contributed N852.29 billion in Q3 2024.

According to the bureau, on a quarter-on-quarter basis, electricity, gas, steam and air conditioning supply recorded the highest growth rate with 47.51%, followed by Public administration and defence, compulsory social security with 19.25%. On the other hand, accommodation and food service activities had the least growth rate with –73.32%, followed by Financial and insurance activities with –70.04%.

NBS said in  terms of sectoral contributions, the top three largest shares in Q3 2024 were manufacturing with 25.47%, followed by mining and quarrying with 18.37%; and Information and communication with 15.07%. Continuing, the bureau said “Nevertheless, the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.004%, followed by Water supply, sewerage, waste management, and remediation activities with 0.03% and activities of extraterritorial organizations and bodies with 0.08%. “However, on a year-on-year basis, CIT collections in Q3 2024 increased by 1.37% from Q3 2023.”