VAT Up by N25.081bn as FG, States, LGAs Share N736.782bn in October

The Federal Government says it collected N229.041 billion in Value Added Tax (VAT) in the month of October 2022, N25.081 billion higher than the N203.960 billion collected in September 2022.

This was contained in a communiqué issued at the end of the Federation Account Allocation Committee (FAAC) meeting for November 2022. The communiqué also announced that FAAC shared N736.782 billion October 2022 Federation Account Revenue to the Federal, States and Local Government Councils.

The N736.782 billion total distributable revenue comprised distributable statutory revenue of N417.724 billion, distributable VAT revenue of N213.283 billion, Exchange Gain revenue of N5.775 billion and N100.000 billion Augmentation from non-oil revenue.

FAAC said in October 2022, the total deductions for cost of collection was N33.555 billion and total deductions for transfers, savings and refunds was N186.749 billion while the balance in the Excess Crude Account (ECA) was $472,513.64.

The communiqué confirmed that from the total distributable revenue of N736.782 billion, the Federal Government received N293.955 billion, the State Governments received N239.512 billion and the Local Government Councils received N177.086 billion. The total sum of N26.228 billion, was shared to, the relevant States as 13 percent derivation revenue.

“Gross statutory revenue of N622.270 billion was received for the month of October 2022. This was lower than the sum of N825.710 billion received in the previous month by N203.440 billion,” the communiqué said.

“From the N417.724 billion distributable statutory revenue, the Federal Government received N206.576 billion, the State Governments received N104.778 billion and the Local Government Councils received N80.779 billion. The sum of N25.591 billion was shared to the relevant States as 13 per cent derivation revenue.

“For the month of October 2022, the gross revenue available from VAT was N229.041 billion. This was higher than the N203.960 billion available in the month of September 2022 by N25.081 billion.

“The Federal Government received N31.992 billion, the State Governments received N106.642 billion and the Local Government Councils received N74.649 billion from the N213.283 billion distributable Value Added Tax VATrevenue.”

It said the N5.775 billion from the Exchange Gain revenue was distributed as follows: the Federal Government received N2.707 billion, the State Governments received N1.373 billion, the Local Government Councils received N1.058 billion and the relevant States received N0.637 billion as 13 percent derivation revenue.

From the N100.000 billion Augmentation, the Federal Government received N52.680 billion, the State Governments received N 26.720 billion and the Local Government Councils received N20.600 billion.

According to the Communiqué, in the month of October 2022, Value Added Tax (VAT) and Companies Income Tax (CIT) increased significantly while Oil and Gas Royalties, Petroleum Profit Tax (PPT) Import Duty recorded considerable decreases. However, Excise Duty increased marginally.