Consumers of goods and services and companies paid about N1.18tn as taxes to the government in the first quarter of 2023, according to the latest reports by the National Bureau of Statistics.
This represents a slight increase from the N1.14tn that was raised in Q1 2022.
The N1.18tn was raised from Value Added Tax and Company Income Tax.
In Q1 2023, the government raised N709.59bn from VAT and N469.01bn from CIT. According to the Federal Inland Revenue Service, CIT is a 30 per cent tax imposed on the profit of companies and VAT is a 7.5 per cent consumption tax paid when goods are purchased, and services rendered and borne by the final consumer.
According to the National Statistics Bureau, manufacturing, information and communication, and mining and quarrying sector are the largest contributors to the VAT.
The VAT report read, “On the aggregate, Value Added Tax for Q1 2023 was reported at N709.59bn, showing a growth rate of 1.75 per cent on a quarter-on-quarter basis from N697.38bn in Q4 2022.
“Local payments recorded were N436.10bn, Foreign VAT Payments were N151.13bn, while import VAT contributed N122.37bn in Q1 2023.”
It added, “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.”
It also noted that on a year-on-year basis, VAT collections in Q1 2023 increased by 20.56 per cent from Q1 2022.
For CIT, financial and insurance activities, manufacturing, and information and communication are the top three sectors that contribute to the CIT.
The CIT report read, “On the aggregate, Company Income Tax for Q1 2023 was reported at N469.01bn, indicating a growth rate of -37.79 per cent on a quarter-on-quarter basis from N753.88bn in Q4 2022.
“Local payments received were N300.78bn, while Foreign CIT Payment contributed N168.23bn in Q1 2023.”
SOURCE: PUNCH
