VAT Revenue Grows As  FG, States, LGAs Share N673.137bn Allocation For August

The Federal Government, States and Local Government Councils,have received from the Federation Account Allocation Committee ( FAAC) a total of N673.137 billion  for  August,2022,from the federation account revenue.

According to a release signed by Henshaw Ogubike Director of Information, Press and Public Relations, the information was contained in a communiqué issued at the end of the FAAC meeting for September, 2022.

The Communiqué  stated that the  N673.137 billion total distributable revenue comprised distributable statutory revenue of N437.871  billion, distributable Value Added Tax (VAT) revenue of N215.266 billion and augmentation of N20.000  billion from the Non-Oil Excess Revenue.

According to the Communique,in  August 2022, the total deductions for cost of collection was N35.487  billion and total deductions for transfers and refunds was N176.907 billion, while the balance in the Excess Crude Account (ECA) was $470,599.54

The Communiqué confirmed that from the total distributable revenue of N673.137 billion; the Federal Government received N259.641 billion, the State Governments received N222.949 billion and the Local Government Councils received N164.247 billion. The sum of N26.301 billion was shared to the relevant States as 13% derivation revenue.

The statement further stated that  gross statutory revenue of N654.360 billion was received for the month of August 2022. This was lower than the sum of N1,066.845 billion received in the previous month by N412.485  billion.

From the  N437.871 billion distributable statutory revenue, the statement added that the Federal Government received N216.815 billion, the State Governments received N109.972 billion and the Local Government Councils received N84.783 billion. The sum of N26.301 billion was shared to the relevant States as 13% derivation revenue.

“For the month of August 2022, the gross revenue available from the Value Added Tax (VAT) was N231.171 billion.  This was higher than the N190.256 billion available in the month of July 2022 by N40.915 billion.

The Federal Government received N32.290 billion, the State Governments received N107.633 billion and the Local Government Councils received N75.343 billion from the N215.266  billion distributable Value Added Tax (VAT) revenue” the statement added

The Communiqué noted that  N20.000 billion augmentation from the Non-Oil Excess Revenue was distributed as follows: the Federal Government received N10.536 billion, the State Governments received N5.344 billion and the Local Government Councils received N4.120 billion.

According to the Communiqué, in the month of August 2022,  Value Added Tax (VAT), Import and Excise Duties recorded significant increases. However, Petroleum Profit Tax (PPT), Companies Income Tax (CIT),  Oil and Gas Royalties decreased considerably