The manufacturing sector topped the list of highest contributors to Value Added Tax (VAT) revenue of the Federal Government in the third quarter of 2022 (Q3’22), with the remittance of N114.37 billion, accounting for 18.29 percent of the total N625.39 billion generated as VAT revenue during the period.
Details of the report by National Bureau of Statistics (NBS) on Sectorial Distribution of Value Added Tax (Q3 2022), show that the Information and Communication (ICT) sector trailed far behind as second highest contributor with just N68.16 billion.
According to the NBS report, the VAT remittance of the manufacturing sector increased by 25.4 percent, Year-on-Year (YoY), against the N91.2 billion in the corresponding period of 2021.
It noted, however, that the VAT remittances from the manufacturing sector quarter-on-quarter (QoQ) declined by 3.73 percent from N118.8 billion recorded in the previous quarter (Q2’22).
The manufacturing sector which is made up of consumer goods and industrial goods companies, as captured by NBS, comprises of thirteen activities: Oil Refining; Cement; Food, Beverages and Tobacco; Textile, Apparel, and Footwear; Wood and Wood products; Pulp Paper and Paper products; Chemical and Pharmaceutical products; Non-metallic Products, Plastic and Rubber products; Electrical and Electronic; Basic Metal and Iron and Steel; Motor Vehicles and Assembly; and Other Manufacturing.
The Information and Communication (ICT) sector remittance of N68.16 billion as VAT in the quarter represented 10.9 percent of the total VAT revenue while the Mining and Quarrying sector remitted N40.29 billion, accounting for 6.44 percent of the total VAT remittance.
Others include: Public administration N31.2 billion; Financial and insurance N27.16 billion; Other services N18.65 billion; Trade N17.31 billion; Transportation and Storage N15.35 billion; Professional Services N7.52 billion; and Accommodation N5.48 billion.