BY COBHAM NSA – The Federation Account Allocation Committee (FAAC) has again weathered the coronavirus (CIVID-19)-induced economic storms and gave the three tiers of government reason to smiles in the month of July 2020.
The Committee announced that N676.407 billion, which is inclusive of earnings from the Value Added Tax (VAT), was put on the table for distribution as monthly allocation. This represents about N25,223 billion over the N651.184 billion that shared as total revenue in June 2020
It explained that of this amount, the Federal Government received N273.189 billion; the States got N190.849 billion, while N142.761 billion went to the 774 Local Government councils in the country.
On their part, the oil producing states got N42.851 billion as the 13 per cent derivation share from the monthly allocation.
The revenue distribution took place during the virtual meeting of FAAC presided over by the Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, Dr Mahmoud Isa- Dutse in Abuja
Rising from the meeting, FAAC said the gross revenue available from VAT for distribution in July, was N132.619 billion, representing an increase of N3.793 billion over the sum of N128.619 billion shared in the month of June
According to a communique issued at the end of the meeting, of this amount, the Federal Government received N18.5 billion; N61.668 billion went to the States, with the Local Government Councils receiving N43.168 billion as their share.
Similarly, N9.283 billion was allocated to revenue generating agencies as the cost of collectionin the month under review.
The Communique further indicated that the statutory revenue of N543.788 billion for the month was N19.262 billion higher than the N524.526 billion received in the preceding month of June.
By the existing revenue sharing formula, the Federal government got N254.68 billion from the amount with the States getting N129.181 billion, while the Local Government Councils received N99.593 billion and N42.851 billion went to the oil producing states as the 13 per cent derivation.
Generally, the communique noted that while Oil and Gas Royalty, Petroleum Profit Tax (PPT) and VAT witnessed appreciable increase in their returns during the period under review, the reverse was the case for Companies Income Tax (CIT) Import and Excise Duty.