Manufacturing sector generates N864b in VAT – NBS
The manufacturing sector contributed about N864 billion of the N3.63 trillion generated as Value Added Tax (VAT) from 2013 to 2018, National Bureau of Statistics (NBS) reported has indicated.
The agency, which stated this in its latest report titled: Sectoral Distribution of VAT in Q4, 2018 reported that the sector’s contribution represented 24 per cent of the total VAT generated within the six-year period.
An analysis of the VAT accruals on yearly collection basis showed that N481.5 billion was collected by the Federal Inland Revenue Service (FIRS) in 2013 compared to the N493.9 billion generated in 2014.
In 2015, the report indicated that N759.4 billion was raked in by the Service from the revenue source while N777.51 billion was collected as VAT by it in 2016. The NBS reported N972.35 billion VAT accrual in 2017 and N1.10 trillion in 2018.
According to the official statistics producing and reporting agency, the manufacturing sector has eight sectoral activities among the 28 sectoral categories from which the N864 billion VAT derived.
The report listed the manufacturing sector’s sectoral activities as automobiles and assemblies, breweries, bottling and beverages; as well as chemicals, paints and allied industries. Others are, other manufacturing, petrochemical and petroleum refineries; pharmaceutical, soaps and toiletries; publishing, printing and paper packaging; and textile and garment industries.
A further breakdown of the real sector’s VAT in the six-year period on sector by sector basis showed that the automobiles and assemblies contributed N8,691,597,713.42; breweries, bottling and beverages generated N192,028,180,262; and chemicals, paints and allied industries raked in N6,989,648,842.73.
Other manufacturing contributed N597,005,133,563, while petrochemical and petroleum refineries raked in N37,013,858,414.6, and pharmaceutical, soaps and toiletries provided N7,131,243,714.78 to the VAT collections.
In addition, publishing, printing, paper packaging contributed N9,685,665,303.04, while textile and garment industry generated N5,501,007,456.24 to the VAT in the six-year period.