Nigeria generated a total sum of N1.53 trillion revenue from Value Added Tax (VAT) in 2020, up by 29.3% when compared to N1.18 trillion recorded in 2019.
This is contained in the Sectoral Value-added tax (VAT) Report, recently released by the National Bureau of Statistics (NBS).
According to the report, VAT revenue grew by 29.3% compared to N1.18 trillion recorded in 2019 and 38.2% increase, as against N1.11 trillion in 2018.
Despite the economic downturn experienced by the country due to the lockdown measures put in place by the government in response to the Covid-19 pandemic and decline in global oil prices, VAT revenue increased significantly in the year, a development, which is largely attributable to the increase in VAT rate from 5% to 7.5% under the Finance Act implemented in February 2020.
Recall that in the 2019 budget, Nigeria projected a total VAT revenue of N1.7 trillion as it anticipated higher tax revenues from VATable goods and services, but achieved 69.8% of the target as it generated a sum of N1.18 trillion during the period.