Government earns N4.92 trillion from VAT, CIT

•Manufacturing, financial services contribute 44 per cent

The government earned a cumulative sum of N4.92 trillion from Value Added Tax (VAT) and Company Income Tax (CIT) last year, data released by the National Bureau of Statistics (NBS) revealed.

The report said revenue from VAT, and CIT, rose by 33 per cent year-on-year (YoY) to N4.92 trillion in 2022. In 2021, N3.68 trillion was realised from the sources.

NBS also reported that manufacturing, financial services and information/communication activities contributed the most to the revenue. Manufacturing and financial services alone contributed 44.16 per cent to the amount grossed.

CIT recorded stronger growth at 45 per cent, while 24.5 per cent growth was recorded in VAT in the period.

The total CIT collections rose to N2.42 trillion, from N1.67 trillion realised in 2021. On the other hand, VAT revenue rose from N2 trillion to N2.49 trillion.

The NBS said: “On the aggregate, CIT for Q4′ 22 was reported at N753.88 billion, indicating a growth rate of -6.95 per cent on a QoQ basis from N810.19 billion in Q3’22.

“Local payments received were N353.9 billion, while Foreign CIT Payment contributed N399.98 billion in Q4’22.

“On the aggregate, VAT for Q4’22 was reported at N697.38 billion, showing a growth rate of 11.5 per cent on a QoQ basis, from N625.39 billion in Q3’22. Local payments recorded were N408.12 billion, while foreign VAT Payments were N159.83 billion. Import VAT contributed N129.43 billion in Q4’22.”

The report further states that on a QoQ basis, water supply, sewerage, waste management and remediation activities recorded the highest growth rate at 57.4 per cent.

“On the other hand, information and communication activities had the lowest growth rate at – 65.75 per cent, followed by arts, entertainment and recreation activities with -64.09 per cent.

“In terms of sectoral contributions, the top three largest shares in Q4 2022 were manufacturing with 31.2 per cent; financial and insurance activities with 12.96 per cent and information and communication activities with 12.77 percent,” it stated.