The Nigerian Government generated a sum of N1.17 trillion from Value Added Tax (VAT) between January and December 2019.
This was disclosed in the Central Bank of Nigeria (CBN)’s economic report.
Giving a breakdown, the apex bank said that the sum of N301.62 billion was generated by the Federal Inland Revenue Service (FIRS) in the first quarter of 2019.
The report noted that the VAT revenue dropped by N6.13bn from the first-quarter figure of N301.62bn to N295.49bn in the second quarter.
During the third quarter of the year, VAT revenue also witnessed a decline of N4.62bn from N295.49bn in the second quarter to N290.87bn in the third quarter.
The trend continued in the fourth quarter of the period under review, as VAT revenue dropped by N2.92bn from N290.87bn in the third quarter to N287.93bn.
In order to generate more revenue to finance its operations, the Federal Government increased the VAT from 5 percent to 7.5 percent.
The Federal Government has started the implementation of the new VAT rate of 7.5 percent since February 1 2020.
The VAT increase is part of the tax reforms included in the 2019 Finance Act.