Government rakes in N1.53tr from company income tax in three months

• Generates N781.35 billion from VAT

The Federal Government realised N1.53 trillion from company income tax (CIT) in the second quarter (Q2), indicating a growth rate of 226.4 per cent from N469.01 billion it realised in the first quarter.

This came as revenue from value-added tax (VAT) for Q2 rose from N709.59 billion in the first quarter to N781.35 billion, showing a growth rate of 10.11 per cent.

The information is contained in data released by the National Bureau of Statistics (NBS) yesterday.According to the report, local CIT payments received were N1.02 trillion, while foreign CIT payments stood at N505.91 billion during the period.

On a quarter-on-quarter basis, water supply, sewerage, waste management and remediation activities recorded the highest CIT growth rate with 626.52 per cent, followed by accommodation and food service activities with 585.11 per cent.

On the other hand, the NBS said education had the lowest growth rate at – 15.48 per cent, followed by public administration and defence and compulsory social security with 25.46 per cent.

In terms of sectoral contributions, the top three largest shares in Q2 2023 were manufacturing with 25.63 per cent, financial and insurance activities with 24.47 per cent and information and communication with 20.3 per cent.

However, the activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.01 percent, followed by activities of extraterritorial organisations and bodies with 0.06 per cent and water supply, sewerage, waste management and remediation activities with 0.09 per cent.

On a year-on-year basis, CIT collections in Q2 increased by 114.28 per cent. Meanwhile, VAT for Q2 was reported at N781.35 billion, showing a growth rate of 10.11 per cent on a quarter-on-quarter basis.

The report said local payments recorded were N512.03 billion while foreign VAT payments were N142.63 billion, Import VAT contributed N126.69 billion in Q2 2023.

On a quarter-on-quarter basis, the activities of extraterritorial organisations and bodies recorded the highest growth rate with 212.06 per cent, followed by real estate activities with 123.09 per cent.

On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –57.06 per cent, followed by agriculture/forestry/fishing with –32.86 per cent.

In terms of sectoral contributions, the top three largest shares in Q2 VAT were manufacturing with 29.64 per cent, information and communication with 21.19 percent and financial and insurance activities with 11.18 per cent.