Amid the continued controversy surrounding the proposed tax reform payments by the present administration, the Federal Authorities and 21 out of the 36 states within the federation have projected a mixed Worth Added Tax income of N2.5 trillion for 2025 of their respective price range estimates.
This projection excludes further funds that will accrue from the implementation of the contentious tax reform payments.
VAT, a consumption tax on items and companies, is levied at every stage of the availability chain the place worth is added.
Sunday PUNCH beforehand reported that VAT income collected beneath the present administration elevated by N549bn inside six months.
This determine was derived from monetary studies launched by the Federation Account Allocation Committee between October 2023 and March 2024.
An evaluation of the 2025 price range paperwork from the Federal Authorities and 21 states revealed a mixed VAT income projection of about N2.53tn, representing a major enhance of N1tn (65.8 per cent) in comparison with the N1.527tn projected in 2024.
The 21 states embody Kebbi, Kaduna, Ekiti, Oyo, Osun, Ogun, Enugu, Borno, Ondo, Kano, Katsina, Ebonyi, Gombe, Anambra, Abia, Niger, Jigawa, Bauchi, Akwa-Ibom, Adamawa, and Delta. Finances paperwork for the remaining 14 states and the Federal Capital Territory had been unavailable.
In 2024, the Federal Authorities’s share of VAT income was N512.8bn, however it’s projected to rise to N972bn in 2025. Equally, Kebbi State, which acquired N41bn from VAT in 2024, anticipates N87.3bn this 12 months. Kaduna State’s VAT income is projected at N57.8bn, up from N48.2bn in its 2024 price range.
Ekiti State plans to generate N54.9bn in VAT income this 12 months, in comparison with N52.6bn in 2024.
Oyo State, which earned N78.8bn from VAT in 2024, projected N144bn for 2025, whereas Osun State expects N78.1bn, up from N45.3bn final 12 months.
Different states corresponding to 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.
Compared, their 2024 projections had been N57.7bn, N44bn, N49.4bn, N30.3bn, N76.6bn, N46.9bn, N36.5bn, N30bn, and N58.4bn respectively.
Equally, 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 had been N40bn, N50.6bn, N45bn, N45bn, N45bn, N47bn, and N45.7bn.
