According to a recent 2021 VAT report released by the National Bureau of Statistics (NBS), Nigeria generated a sum of N2.07 trillion as Value Added Tax (VAT) revenue for the year 2021.
According to the report, Nigeria’s VAT revenue jumped by 35.4% in 2021 to N2.07 trillion from N1.53 trillion recorded in year 2020 and a 75% increase compared to N1.18 trillion recorded as VAT in 2019.
Since Nigeria increased her VAT rate from 5% to 7.5% in February 2020, the country’s VAT revenue has recorded a significant boost, further improving the Federal Government’s non-oil revenue.
Here is a breakdown of how the VAT came in, according to data sourced from Nairametrics;
The Federal Inland Revenue Service is improving its tax collections, with its company income tax revenue also increasing by 3.6% to N1.69 billion in the same period compared to N1.41 billion recorded in the previous year.
The manufacturing sector, the information and communication sector and the public administration, defense, and compulsory social security sector, remitted the highest VAT of N194.1 billion, N121.6 billion and N55.82 billion respectively in the second half of the year between July and December 2021.