Under Buhari, FG rakes in N10 trillon VAT – NBS

The Federal Government has raked in N10.1tn from the collection of Value Added Tax under the administration of the President Muhammadu Buhari.

This comes against the backdrop of the advice by the Minister of Finance, Zainab Ahmed, that the incoming government should increase the VAT from the current 7.5 per cent to 10 per cent.

VAT is a 7.5 per cent consumption tax administered by the Federal Inland Revenue Service when goods are purchased and services are rendered, and it is borne by the final consumer.

Revenue generated from VAT is usually disbursed to the three tiers of government through the Federation Accounts Allocation Committee.

An analysis of reports obtained from the National Bureau of Statistics showed that the VAT earnings continued to rise annually throughout the eight-year period.

The country earned N759.4bn in 2015, N777.5bn in 2016, N972.4bn in 2017 and N1.1tn in 2018.

VAT collections in 2019 amounted to N1.2tn, N1.5tn in 2020, N2.1tn in 2021 while N2.5tn was paid in 2022.