Abuja and states scramble as VAT plummets
By Jeph Ajobaju, Chief Coy Editor
Abuja and states are in a scramble for more funds as revenue from taxes, including Value Added Tax (VAT), have declined and led to the sharing of N671.910 billion in October among the three tiers of government.
A report signed by federal Accountant General Ahmed Idris said the federal government received N284.292 billion, states N209.838 billion, local governments N156.282 billion, and oil states N21.498 billion as 13 per cent derivation.
Per Vanguard, Gross Revenue from VAT in October was N166.284 billion against N170.850 billion in September, a decrease of N4.566 billion.
It was distributed as follows:
- Federal – N23.227 billion
- States – N77.422 billion
- Councils – N54.195 billion
- Transfers and Refunds – N4.789
- Cost of Collection – N6.651 billion
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Statutory revenue
Distributed Statutory Revenue of N407.864 billion in October was lower than N692.283 billion in September by N284.419 billion.
It was distributed as follows:
- Federal – N180.551 billion
- States – N91.578 billion
- Councils – N70.603 billion
- Derivation – N21.118 billion
- Cost of Collection – N17.940 billion
- Transfers and Refunds – N26.075 billion
Augmentation
Augmentation totalling N100 billion was distributed as follows:
- Federal – N52.680 billion
- States – N26.720 billion
- Councils – N20.600 billion
Decrease in taxes
Companies Income Tax (CIT), Petroleum Profit Tax (PPT), and Oil and Gas Royalties decreased considerably. There was a slight decline in VAT while Import and Excise Duty increased marginally.
Total N671.910 billion revenue distributable for October came from:
- Gross Statutory Revenue – N363.849 billion
- VAT – N154.849 billion
- Exchange Gain – N3.217 billion
- Augmentation – N100 billion
- Non-Oil Mineral Revenue – N50 billion
The balance of Excess Crude Account (ECA) stood at $60.860 million.
VAT distribution ratio
VAT was distributed in the following ratio:
- Federal – 15 per cent
- States – 50 per cent
- Councils 35 per cent
Mineral revenue in October stood at N167.56 billion, lower than N422.7 billion in September, a difference of N255.13 billion.
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