The total revenue that accrued to the coffers of the government from Value Added Tax between October 2023 and March 2024 increased by 58 per cent according to report.
This was contained in the various financial reports released by the Federation Account Allocation Committee between October 2023 and March 2024.
According to a statement issued on November 22, 2023 by the Director (Press and Public Relations) of the Ministry of Finance, Stephen Kilebi, FAAC said it shared N906.96bn among the three tiers of government for October 2023.
The committee disclosed that part of the shared funds included VAT of N347.343bn, which it said, was N43.793bn higher than the N303.550bn distributed in the preceding month.
“The Federation Account Allocation Committee at the end of the meeting indicated that the Gross Revenue available from the Value Added Tax for October 2023 was N347.343bn, which was an increase from the N303.550bn distributed in the preceding month, resulting in an increase of N43.793bn.
“From that amount, the sum of N10.894bn was allocated for the Cost of Collection, and the sum of N10.003bn was given for Transfers, Intervention and Refunds. The remaining sum of N323.446bn was distributed to the three tiers of government of which the Federal Government got N48.517bn, the states received N161.723bn, and Local Government Councils got N113.206bn,” the FAAC stated in its November release.
The reported indicated that VAT generated in November was N335.656bn, which was lower than the October estimates, but between December 2023 and March 2024, the VAT revenue steadily increased.
It was N458.622bn in December 2023, N420.733bn in January 2024, and N428.80bn in February 2024.
In a statement by the Director of Information and Public Relations, Ministry of Finance, Mohammed Manga, on Friday, April 19, 2024, FAAC said the gross revenue from VAT for March 2024 amounted to N549.698bn, which was N89.210bn higher than the preceding month’s estimate.
FAAC had attributed the increase in VAT to the country’s economic growth and improved tax compliance, but a comparison of the N347.343bn VAT generated in October 2023 with the N549.698bn VAT made in March 2024 gave a difference of N202.355bn, which was 58 per cent of the October figure.
