The National Bureau of Statistics (NBS) has reported a remarkable year-on-year increase of 51.6% in Value Added Tax (VAT) collections for Q3 2023, amounting to a total of N948.07 billion. This surge reflects a strong rebound in economic activity and consumption, signaling resilience in the face of global challenges. The VAT Q3 2023 Report indicates positive growth in various sectors, contributing to the overall increase in revenue.
Key Points:
- Year-on-Year Growth:
- VAT collections in Q3 2023 witnessed a significant year-on-year growth of 51.6%, highlighting a robust recovery in economic activities. The total collections amounted to N948.07 billion.
- Quarter-on-Quarter Growth:
- The report shows a quarter-on-quarter growth rate of 21.34%, indicating an increase from N781.35 billion in Q2 2023 to the reported figure in Q3 2023.
- Sectoral Contributions:
- The top three sectors contributing the largest shares to VAT collections in Q3 2023 were manufacturing (26.51%), information and communication (19.04%), and financial and insurance activities (12.31%).
- Payment Breakdown:
- Local payments accounted for N522.08 billion, while foreign VAT payments contributed N204.58 billion. Import VAT had a significant contribution of N221.41 billion in Q3 2023.
- Sectoral Growth Rates:
- Agriculture, forestry, and fishing recorded the highest growth rate at 91.87% on a quarter-on-quarter basis. Activities of extraterritorial organizations and bodies followed closely with a growth rate of 80.25%.
- Lowest Growth Rates:
- Real estate had the lowest growth rate with -37.68%, followed by construction with -9.54%. These sectors experienced contraction during the period.
- Sector with the Least Share:
- Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.02%.
Conclusion: The substantial increase in VAT collections for Q3 2023 reflects positive economic momentum and recovery in Nigeria. The diverse contributions from various sectors highlight the broad-based nature of the growth. The report provides insights into the sectors driving economic activity and tax revenue, indicating areas of strength and potential for continued recovery.
