NBS: Revenue from VAT Hits N540.23bn in Two Quarters

0
Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Babatunde Fowler,
  •  Terms of trade rose by 0.52%

By James Emejo im Abuja

A total sum of N540.23 billion was generated from the Value Added Tax (VAT) deductions in the second and third quarters of the year (Q2, Q3 2018), the National Bureau of Statistics (NBS) has said.

While the sum of N266.73 billion was realised in Q2, the figure rose to N273.50 billion in Q3, and N269.79 billion in Q1, representing an increase of 2.54 per cent quarter on quarter, well as an increase of 9.16 per cent year on year.

Altogether, VAT receipts for the first three quarters of the year stood at N810.02 billion.

According to the Sectoral Distribution of Value Added Tax for Q2 and Q3, which was released by the statistical agency Wednesday, Other manufacturing category generated N31.48 billion in VAT, the highest in the distribution.

The Professional Services and Commercial and Trading both generated N25.57 billion and N15.99 billion respectively.

Mining generated the least VAT of N52.70 million followed by Pharmaceutical, Soaps & Toiletries, which posted N177.34 billion, as well as Textile and Automobiles & Assemblies which recorded N265.35 million.

According to the NBS, out of the total amount generated in Q3, N128.62 billion was generated as Non-Import VAT locally while N58.84 billion was generated as Non-Import VAT for foreign.

The balance of N86.04 billion was generated as NCS-Import VAT.

Meanwhile, the country’s All Commodity group import price index decreased by 1.76 per cent due to prices of vegetable products, while the All Commodity group export price index rose by 1.26 per cent driven by prices of prepared foodstuffs; beverages, spirits and vinegar; tobacco and footwear, headgear, umbrellas, sunshades, and whips among others.

Consequently, the All Products Terms of Trade (TOT) index rose by 0.52 per cent, driven by prices of prepared foodstuffs;
beverages, spirits and vinegar; tobacco and footwear, headgear, umbrellas, sunshades, and whips, among others.

According to the Commodity Price Indices
and Terms of Trade (Q3 2018) also released Wednesday by the NBS, the All Region group export index rose by 1.05 per cent as a result of trade with the continent of Asia.
The All Region group import index rose by 1.22 per cent as a result of trade with Oceania and Asian Regions, while the All Region terms of trade rose marginally by 0.10 per cent as a result of trade with Asia and other African countries, it added.

Nigeria’s top five trading partner countries were identified as India, China, Spain, France and the Netherlands in the period under review.

The NBS noted that crude petroleum and natural gas constituted the major export to trading partners, while motor spirit (ordinary) and motorcycles were the major import.

According to the NBS, essentially, the terms of trade (TOT) represent the ratio between a country’s export prices and its import prices.

The ratio is calculated by dividing the price of the exports by the price of the imports, usually in percentage terms.

The NBS further explained that: “The terms of trade for Nigeria is calculated as the value of total exports as per cent of the value of total imports. An increase in the terms of trade between two periods (or when TOT is greater than 100%) means
that the value of exports is increasing relative to the value of imports, and the country can afford more imports for the same value of exports.

“For example, an increase in the price of oil between two periods (with oil production remaining the same) is likely to increase or improve the terms of trade for Nigeria. The TOT, which is recorded as an index, can be used as an indicator of the health of an economy,” it said.