FG Gets More Funds As VAT, CIT Rise By Over N1.3m

Revenue from Value Added Tax, VAT, and Company Income Tax, CIT, rose by over N1. 3 trillion in the year ending December 2022 according to figures released by the National Bureau of Statistics, NBS.

The government agency said the figure represents a 33 percent increase year on year compared to the comparable year 2021. The revenue collected from CIT and VAT stood at N4.92 trilion in 2022 as against 5he N368 trillion collected by the agency in 2021.

According to the details, CIT recorded stronger growth at 45 per cent as against the 24.5 per cent growth recorded in VAT during the review period.

While the total CIT collections rose to N2.42 trillion in 2022 from N1.67 trillion in 2021 , indicating 45 per cent increase, the VAT revenue rose to N2.49 trillion in 2022 from N2 trillion in 2021, indicating 24.5 per cent increase.

The NBS fourth quarter 2022, (Q4’22) CIT and VAT reports released on Wednesday also indicate that CIT fell quarter-on-quarter (QoQ) by 6.9 percent to N763.88 bn in Q4’22 from N810.19 billion in Q3’22.
The agency’s report further showed that VAT rose to N697.38 billion in Q4’22 from N625.39 billion in Q3’22.

The NBS said:”On the aggregate, CIT for Q4′ 22 was reported at N753.88 billion, indicating a growth rate of -6.95 percent on a QoQ basis from N810.19 billion in Q3’22. “Local payments received were N353.90 billion, while Foreign CIT Payment contributed N399.98 billion in Q4’22.

“However, on a YoY basis, CIT collections in Q4’22 increased by 116.75 percent from Q4’21.
:”On the aggregate, VAT for Q4’22 was reported at N697.38 billion, showing a growth rate of 11.5 percent on a QoQ basis from N625.39 billion in Q3’22.

“Local payments recorded were N408.12 billion, Foreign VAT Payments were N159.83 billion, while import VAT contributed N129.43 billion in Q4’22.

“However, on a year-on-year basis, VAT collections in Q4’22 increased by 23.7 percent from Q4’21.”