Company Income Tax has dwindled to N984.61 billion showing the stark reality of country’s economy that has forced many businesses to close shop, sending more Nigerians into the unemployment market and increasing the poverty rate.
Unlike the CIT, Value Added Tax (VAT) added N230 billion quarter on quarter, growing to N1.43 trillion in Q1 2024 from N1.20 trillion in the last quarter of 2023, showing a growth rate of 19.21 per cent.
Data by the National Bureau of Statistics on Tuesday shows CIT dropped by -12.87 per cent in the first quarter of 2024 from N1.13 trillion generated by the Federal Inland Revenue Service (FIRS) in Q4 2023.
The breakdown shows local payments received were N386.49 billion, while Foreign CIT Payment contributed N598.13 billion in Q1 2024.
It revealed that on a quarter-on-quarter basis, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the highest growth rate with 330.42 per cent, followed by Administrative and support service activities with 33.18 per cent.
The manufacturing sector recorded the lowest rate with –70.24 per cent, followed by the Electricity, gas, steam and air conditioning sector dropping –69.14 per cent.
In terms of sectoral contributions, the top three largest contributions in Q1 2024 came from Mining and quarrying at 20.94 per cent; Financial and insurance activities at 18.73 per cent; and Information and communication at 12.56 per cent.
The report said the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.02%, followed by Water supply, sewerage, waste management, and remediation activities with 0.07% and Activities of extraterritorial organisations and bodies with 0.24%.
It, however, adds that on a year-on-year basis, CIT collections in Q1 2024 increased by 109.93 per cent from Q1 2023.
Data from the National Bureau of Statistics revealed that Value Added Tax (VAT) for Q1 2024 was N1.43 trillion, from N1.20 trillion reported in Q4 2023.
According to the report, local payments recorded were N663.18 billion, Foreign VAT Payments were N435.73 billion, while import VAT contributed N332.01 billion in Q1 2024.
On a quarter-on-quarter basis, NBS noted that accommodation and food service activities recorded the highest growth rate at 59.15 per cent, followed by accruals from administrative and support with 47.79 per cent.
It said, “Activities of extraterritorial organisations and bodies had the lowest growth rate with –57.01%, followed by Human health and social work activities with –27.73%.”
“In terms of sectoral contributions, the top three largest shares in Q1 2024 were Manufacturing with 26.72 per cent, Information and Communication with 17.42 per cent; and Mining & Quarrying activities with 15.42 per cent.”
“Activities of households as employers, undifferentiated goods- and services producing activities of households for own use recorded the least share with 0.01%, followed by activities of extraterritorial organisations and bodies with 0.03 per cent and water supply, sewerage, waste management, and remediation activities with 0.05 per cent,” it noted.
VAT collections in Q1 2024, on a year-on-year basis, increased by 101.65% from Q1 2023, according to the report.
