[ad_1]
Amid the ongoing controversy surrounding the proposed tax reform bills by the current administration, the Federal Government and 21 out of the 36 states in the federation have projected a combined Value Added Tax revenue of N2.5 trillion for 2025 in their respective budget estimates.
This projection excludes additional funds that may accrue from the implementation of the contentious tax reform bills.
VAT, a consumption tax on goods and services, is levied at each stage of the supply chain where value is added.
Sunday PUNCH previously reported that VAT revenue collected under the current administration increased by N549bn within six months.
This figure was derived from financial reports released by the Federation Account Allocation Committee between October 2023 and March 2024.
An analysis of the 2025 budget documents from the Federal Government and 21 states revealed a combined VAT revenue projection of about N2.53tn, representing a significant increase of N1tn (65.8 per cent) compared to the N1.527tn projected in 2024.
The 21 states include Kebbi, Kaduna, Ekiti, Oyo, Osun, Ogun, Enugu, Borno, Ondo, Kano, Katsina, Ebonyi, Gombe, Anambra, Abia, Niger, Jigawa, Bauchi, Akwa-Ibom, Adamawa, and Delta. Budget documents for the remaining 14 states and the Federal Capital Territory were unavailable.
In 2024, the Federal Government’s share of VAT revenue was N512.8bn, but it is projected to rise to N972bn in 2025. Similarly, Kebbi State, which received N41bn from VAT in 2024, anticipates N87.3bn this year. Kaduna State’s VAT revenue is projected at N57.8bn, up from N48.2bn in its 2024 budget.
Ekiti State plans to generate N54.9bn in VAT revenue this year, compared to N52.6bn in 2024.
Oyo State, which earned N78.8bn from VAT in 2024, projected N144bn for 2025, while Osun State expects N78.1bn, up from N45.3bn last year.
Other states such as Ogun, Enugu, Borno, Ondo, Kano, Katsina, Ebonyi, Gombe, and Anambra have projected VAT revenues of N85bn, N74.9bn, N87.3bn, N71.5bn, N97.3bn, N85.9bn, N50.8bn, N39bn, and N92.4bn respectively for 2025.
In comparison, their 2024 projections were N57.7bn, N44bn, N49.4bn, N30.3bn, N76.6bn, N46.9bn, N36.5bn, N30bn, and N58.4bn respectively.
Similarly, Abia, Niger, Jigawa, Bauchi, Akwa-Ibom, Adamawa, and Delta have projected VAT revenues of N60.6bn, N64.6bn, N80bn, N78.5bn, N70bn, N52.5bn, and N46.6bn respectively for 2025. Their projections for 2024 were N40bn, N50.6bn, N45bn, N45bn, N45bn, N47bn, and N45.7bn.
[ad_2]
Source link
