VAT revenue rises to N166.228bn as FAAC shares N696.965bn to FG, States, LG

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Revenue generated from Value Added tax (TAX) has risen to N166.228 billion. The figure was disclosed as the Federation Accounts Allocation Committee (FAAC) shared the sum of N696.965 billion federation allocation for the month of August to the federal, states and local governments.

The Deputy Director of Information at the Office of Accountant General of the Federation (OAGF), Oshundun Olajide, had in a statement on Thursday, given details of the financial records.

The Director in the statement indicated that that FAAC had a virtual conference on Wednesday where it agreed on sharing the fund to the three tiers of government.

Oshundun Olajide highlighted: “From this amount, inclusive of Value Added Tax (VAT), Exchange Gain, Excess Bank Charges and Revenue from non-oil, the Federal Government received N289.257 billion, the states received N217.183 billion, the local government councils got N161.541 billion, while the oil-producing states received N41.376 billion as derivation (13 per cent of mineral revenue).”

The meeting in a communique disclosed that the gross revenue from the Value Added Tax (VAT) for the month of August was N166.228 billion.

The communique further indicated that the Federal Government received N24.934 billion of the revenue generated from VAT, while the states and local government councils (LGCs) received N83.114 billion and N58.180 billion, respectively.

The statement highlighted: “The sum of N50 billion from non-oil revenue was equally distributed accordingly to the three tiers of government as follow – the Federal Government received N26.340 billion; the states got N13.360 while the LGCs received N10.3 billion.

“The distributed statutory revenue of N477.504 billion was received for the month from which the Federal Government received N236.437 billion, states got N119.924 billion, LGCs got N92.4456 billion, and derivation (13 per cent mineral revenue) got N28.687 billion.”

It indicated that Companies Income Tax (CIT), Petroleum Profit Tax (PPT), oil and gas royalties, and excise duty recorded decreases, while import duty and VAT increased significantly.

The statement also disclosed that total revenue distributable for the month included gross statutory revenue of N477.504 billion, VAT of N166.228 billion, exchange gain of N2.830 billion, excess bank charges recovered of N0.403 billion, and N50 billion from non-oil revenue.

All amounted to N696.965 billion.