Federal Government’s revenue from Company Income Tax (CIT) saw a significant increase in the second quarter of 2023, reaching N1.53 trillion.
Gatekeepers News reports that according to the National Bureau of Statistics CIT report released on Monday, the value is over three times higher than the N469 billion generated in the first quarter of 2023.
CIT is a tax imposed on the profits of registered companies in Nigeria, including foreign firms operating within the country. It is charged at a rate of 30 percent for companies with a turnover of more than N100 million and 20 percent for companies with turnovers between N25 million and N100 million.
According to the report, CIT revenue from local companies reached N1.03 trillion and N505.91 billion from foreign firms during the second quarter of 2023. This growth represents a remarkable 226.40 percent increase in CIT collections on a quarter-on-quarter basis.
“On the aggregate, Company Income Tax (CIT) for Q2 2023 was reported at N1.53 trillion, indicating a growth rate of 226.40% on a quarter-on-quarter basis from N469.01 billion in Q1 2023,” the report reads.
“Local payments received were N1.02 trillion, while Foreign CIT Payment contributed N505.91 billion in Q2 2023.
“On a quarter-on-quarter basis, water supply, sewerage, waste management, and remediation activities recorded the highest growth rate with 626.52%, followed by accommodation and food service activities with 585.11%.
“On the other hand, education had the lowest growth rate with – 15.48%, followed by public administration and defence, compulsory social security with 25.46%.”
In terms of sectoral contributions, the top three largest shares in Q2 2023 were manufacturing (25.63 percent); financial and insurance activities (24.47 percent); and the information and communication sector (20.30 percent).
However, the report explained that the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share at 0.01 percent, followed by activities of extraterritorial organisations and bodies at 0.06 percent; and water supply, sewerage, waste management, and remediation activities with 0.09 percent.
In addition, on a year-on-year basis, the CIT collections in Q2 2023 increased by 114.28 percent from Q2 2022, the NBS said.
