FG Rakes In N2trn From Company Tax

The federal government generated N2.1 trillion from company income tax, CIT, in the first nine months of 2022.

This was disclosed by the National Bureau of Statistics, NBS, in its recent CIT report for the third quarter (Q3) of 2022.

In the latest CIT report, NBS said in Q1, the federal government got a total revenue of N551.5 billion; and in Q2, the figure increased to N714.4 billion.

As at Q3 of 2022, the CIT revenue increased to N810.2 billion. This gives a total of N2.1 trillion revenue yield from tax in nine months (Q1,Q2, and Q3).

The NBS said the figure represents an increase of 55 percent when compared to the N1.3 trillion generated in the first nine months of 2021.

For the period under review, local payments contributed N1.3 trillion while foreign CIT payments amounted to N749.82 billion.

MANUFACTURING RECORDS HIGHEST SECTORIAL CONTRIBUTION IN NINE MONTHS

Despite foreign exchange, FX, challenges, the manufacturing sector led the list of sectorial contributions with N358.2 billion in income tax paid to the federal government in nine months. According to NBS, the revenue from this sector represents an increase of 121 percent compared to the N162.2 billion recorded in the same period in 2021.

The information and communication sector followed with N131.2 billion in income tax paid to the federal government.

The report said the financial and insurance sector remitted a sum of N163 billion as CIT, followed by mining quarrying with a remittance of N114.3 billion.

Other sectors with increased tax revenues include; the public administration and defence, compulsory social security with N68.3 billion remitted; other service activities generated N56 billion; and transportation and storage sector remitted N56.3 billion.

ARTS, ENTERTAINMENT AND RECREATION RECORD HIGHEST (Q-ON-Q) GROWTH RATE

In 2021, Nigeria held 97 percent of the box office revenue from movies in West Africa, whereas in 2020 it accounted for 99 percent of the revenue. Due to the coronavirus pandemic, movie theatres were closed in Liberia, Ghana, and Nigeria. They reopened only in Nigeria in September 2020.

Analysis of the NBS data by TheCable Index, shows that the arts, entertainment and recreation sector, which comprises the fashion, music and movie industries, recorded the highest growth rate on quarter-on-quarter (q-on-q) basis.

In Q1 of 2022, the sector remitted N2.1 billion to the federal government and by Q2 of the same year, the figure increased to N3.38 billion.

More so, in Q3, the figure doubled to N6.54 billion, which makes a total of N11.99 billion in nine months.

This also means that the sector increased its remittance to the government in Q3 2022 by 93 percent, when compared to Q2; followed by agriculture, forestry, and fishing with 75.38 percent.

On the other hand, accommodation and food service activities had the lowest growth rate at -64.81 percent, followed by water supply, sewerage, waste management, and remediation activities at -64.75 percent.

The Witness