CIT collection increases 29.53% QoQ
By Jeph Ajobaju, Chief Copy Editor
Revenue from Company Income Tax (CIT) reached N714.40 billion in the second quarter of the year ended June (Q2 2022), a growth of 29.53 per cent quarter-on-quarter (QoQ) from N551.53 billion in Q1 2022.
Newly released ‘Company Income Tax Report for Q2 2022’ by the National Bureau of Statistics (NBS) shows local CIT at N634.01 billion and Foreign CIT N80.39 billion.
Accommodation & Food Services had the highest growth QoQ with 481.93 per cent, followed by Information & Communication (430.67 per cent), and Transportation & Storage (339.08 per cent).
“Local payments received were N634.01 billion, while Foreign CIT payment contributed N80.39 billion in Q2 2022.
“On the other hand, Activities of extraterritorial organizations & bodies had the lowest growth rate with -42.59%, followed by Activities of households as employers, undifferentiated goods and services-producing activities of households for own use with -31.80%,” the NBS said.
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Sectoral contributions
“In terms of sectoral contributions, the top three largest shares in Q2 2022 were Manufacturing with 27.55%; Information & Communication with 24.56%, and Financial & Insurance with 14.98%,” the report explained, per Nairametrics.
“Conversely, the Activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.004%, followed by Activities of extraterritorial organizations & bodies with 0.07%; and Water supply, sewerage, waste management & remediation activities with 0.12%.
“However, on a year-on-year [YoY] basis, CIT collections in Q2 2022 increased by 51.34% from Q2 2021.”
Manufacturing remitted N174,682.19 billion in Q2 2022, ICT (N155,737.51 billion), and Financial Services (N94,983.53 billion).
CIT rose 19.6 per cent in 2021 to N1.69 trillion, largely due to a base period, as revenue had dropped in 2020 to N1.41 trillion caused by the pandemic that halted most economic activities in the year.