VAT collection notches N6.72tr, with rises in import and non-import categories
By Jeph Ajobaju, Chief Copy Editor
Value Added Tax (VAT) collection soared to N6.72 trillion in 2024, up 84.62 per cent year-on-year (YoY) on the total N3.64 trillion for 2023, according to the latest figures released by the Federal Inland Revenue Service (FIRS).
Data presented at an FIRS management retreat by Amina Ado, Large Taxpayers Group Coordinating Director, shows remarkable growth in both import and non-import categories.
The data shows that
- Non-import VAT, which stood at N2.93 trillion in 2023, rose 75.09 per cent to N5.13 trillion in 2024.
- Import VAT more than doubled from N715 billion to N1.59 trillion, a 122.38 per cent growth.
- Company Income Tax (CIT) had a 102.5 per cent rise, climbing from N3.35 trillion in 2023 to N6.78 trillion in 2024.
- Petroleum Profit Tax, Hydrocarbon Tax, and Upstream CIT segment saw a 35.2 per cent growth, from N4.26 trillion to N5.76 trillion.
- Education Tax posted the highest YoY percentage growth, jumping 127.8 per cent, from N719 billion in 2023 to N1.64 trillion in 2024.
FIRS Executive Chairman Zacch Adedeji announced a revenue target of N25.2 trillion in 2025.
Tax reform Czar argues MTN pays the most VAT monthly, N200b, and should be shared fairly
MTN pays more than N200 billion in VAT monthly, making it the largest contributor to the national VAT pool, Presidential Fiscal Policy and Tax Reforms Committee Chairman, Taiwo Oyedele, disclosed last December.
Oyedele made the disclosure as a panellist on a Town Hall on Tax Reforms hosted by Channels Television, explaining that the reforms seek to address disparities in the current VAT sharing formula.
According to him, the current formula allocates all VAT paid by MTN to Lagos where its headquarters is located even though the services that generate this revenue are bought countrywide.
He stressed that “MTN is the largest contributor to VAT in Nigeria. So they, in fact, pay VAT of over N200 billion every month; the gap between them and number two is huge.
“Today, all the VAT paid by MTN is credited and attributed to Lagos State, even as calls are made in Kano, the FCT [Federal Capital Territory], Ekiti, Edo, or Kebbi.”
Oyedele said the reform bills propose adjustments to ensure a more equitable distribution of VAT revenues across states based on actual consumption rather than the location of corporate headquarters of the entities providing goods and services.
He added that under the new framework for instance, Lagos, which currently retains the entire N200 billion VAT paid by MTN, would see its share reduced to approximately 20 per cent, while other states across the federation would benefit from a fairer distribution.
“This adjustment ensures that states where the VAT is generated get their fair share,” he insisted.
“When you analyse the data, you see Lagos State’s share reduces slightly, but every other state gains.”
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