The National Bureau of Statistics’ (NBS) revealed via its report that consumers and businesses contributed roughly ₦1.18 trillion in taxes to the government in the first quarter of 2023.
This is a modest rise over the ₦1.14 trillion raised in the first quarter of 2022.
The ₦1.18 trillion was generated through Value Added Tax (VAT) and Company Income Tax (CIT).
The government raised ₦709.59 billion from VAT and ₦469.01 billion from CIT in the first quarter of 2023.
According to the Federal Inland Revenue Service (FIRS), CIT is a 30% tax on corporate profits, whereas VAT is a 7.5% consumption tax paid when goods are purchased and services are delivered and borne by the final consumer.
Manufacturing, technology and communication, and mining and quarrying are the main contributors to VAT, according to the National Statistics Bureau.
“On the aggregate, Value Added Tax for Q1 2023 was reported at ₦709.59 billion, showing a growth rate of 1.75 per cent on a quarter-on-quarter basis from ₦697.38 billion in Q4 2022,” NBS said.
“Local payments recorded were N436.10bn, Foreign VAT Payments were ₦151.13 billion, while import VAT contributed ₦122.37 billion in Q1 2023.
“In terms of sectoral contributions, the top three largest shares in Q1 2023 were manufacturing with 29.65 per cent; information and communication with 19.29 per cent; and mining & quarrying with 12.24 per cent.”
The top three industries that contribute to CIT are banking and insurance operations, manufacturing, and information and communication.
The CIT report read, “On the aggregate, Company Income Tax for Q1 2023 was reported at ₦469.01 billion, indicating a growth rate of -37.79 per cent on a quarter-on-quarter basis from ₦753.88 billion in Q4 2022.
“Local payments received were ₦300.78 billion, while Foreign CIT Payment contributed ₦168.23 billon in Q1 2023.”
