The Federal Government earned N1.75 trillion from company income tax (CIT) in the third quarter (Q3) of 2023. This is an increase of 115.90 percent over what was collected in 2022.
On a month-on-month basis CIT collection increased by 14.27 percent over the N1.53 trillion the government earned in Q2 2023.
The National Bureau of Statistics (NBS) which gave this figure in its Q3 2023 CIT report, also reported that the federal government income from Value Added Tax (VAT), increased from N781.35 billion generated in Q2 2023 to N948.07 billion, showing a growth rate of 21.34 percent on a quarter-on-quarter basis. However, on a year-on-year basis, VAT collections in Q3 2023 increased by 51.60 percent from Q3 2022.
The report says local CIT payments received were N651.63 billion, while Foreign CIT Payment contributed N1.10 trillion during the period.
On a quarter-on-quarter basis education recorded the highest growth rate with 59.60 percent, followed by public administration and defence, compulsory social security with 57.04 percent.
On the other hand, according to the report, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –74.34 percent, followed by Water supply, sewerage, waste management and remediation activities with -73.25 percent.
“In terms of sectoral contributions, the top three largest shares in Q3 2023 were information and communication with 26.18 percent; manufacturing with 23.90 percent; and mining and quarrying with 11.86 percent,” NBS said.
For VAT, the report shows that local payments recorded were N522.08 billion, Foreign VAT Payments were N204.58 billion, while import VAT contributed N221.41 billion in Q3 2023.
On a quarter-on-quarter basis, agriculture, forestry and fishing recorded the highest growth rate with 91.87 percent, followed by the activities of extraterritorial organizations and bodies with 80.25 percent.
On the other hand, the report says real estate had the lowest growth rate with –37.68 percent, followed by construction with – 9.54 percent.
In terms of sectoral contributions, the top three largest shares in Q3 2023 were manufacturing with 26.51 percent; information and communication with 19.04 percent; and financial & insurance activities with 12.31 percent.
“Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.02 percent, followed by water supply, sewerage, waste management, and remediation activities with 0.06 percent; and activities of extraterritorial organizations and bodies with 0.10 percent.