From Isaac Anumihe, Abuja
The Federal Government generated over N625.39 billion Value Added Tax (VAT) in the third quarter of 2022.
According to a report by the National Bureau of Statistics (NBS),
the figure represents an increase of 4.21 per cent from the N600.15 billion generated in Q2 2022.
The report explained that local VAT payments amounted to N367.93 billion in Q3 2022.
Recall that VAT is tax paid on the consumption of goods and services rendered. The current VAT rate in Nigeria is 7.5 per cent.
VAT is calculated at a flat rate of 7.5 per cent on all goods and services sold in Nigeria. This is stipulated under section 4 of the VAT Act, except for items that are on the VAT-exempt list or zero-rated. An example of such is exported goods. All exported goods are zero-rated. That is such goods are VAT-able but at zero per cent.
However, on April 1, this year, Federal Government increased VAT from 5 per cent to 7.5 per cent from all taxable services provided to Nigerian customers.
