The National Bureau of Statistics (NBS) said in its company income tax (CIT) report for the second quarter of 2023 that the government’s revenue from the tax more than tripled to N1.53 trillion.
According to the report, the value as 226.40 percent higher than the N469 billion the government collected in the first quarter.
The CIT is a tax on the profits of registered companies; it also includes the tax on the profits of foreign firms operating in the country.
Currently, the tax is charged at the rate of 30 percent for companies with more than N100 million in turnover, and 20 per cent for companies with a turnover ranging between N25 million and N100 million.
According to the bureau, CIT payments from local companies totalled N1.03 trillion, while foreign firms contributed N505.91 billion in the quarter under review.
“On the aggregate, 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.
“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%,” the NBS stated.
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 per cent, 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.
*With TheCable report
