By Jeph Ajobaju, Chief Copy Editor
Company income tax (CIT) fetched N392.8 billion for Nigeria’s treasury in the first quarter of 2021 (Q1 2021), a rise of N97.1 billion or 32.84 per cent compared to N295.7 billion in Q1 2020, and 32.82 per cent against N294.72 billion in Q4 2020.
In all of 2020, CIT revenue was N1.41 trillion, a 13.35 per cent decline compared to N1.63 trillion in 2019, and 0.49 per cent slump against N1.42 trillion in 2018.
The Q1 2021 figures released by the National Bureau of Statistics (NBS) shows that Breweries, Bottling, and Beverages sector generated the highest CIT with N23.26 billion.
Other sectoral generations are
- Professional Services including Telecoms (N18.17 billion), State Ministries & Parastatals (N17.35 billion).
- Textile and Garment Industry (N13.49 million), Mining (N34.4 million), Automobiles and Assemblies (N73.57 million).
A total N152.33 billion was generated locally and N184.59 billion through foreign companies. The balance N55.85 billion came from other payments.
Nairametrics reports that foreign payments are bulk payments from JP Morgan account which cannot be attributed to any office or sector.
Other payments are through E-transact, E-tax pay, and Remitta (GIFMIS), that is Government Integrated Financial Management Information System.
Other highlights
- The Breweries, Bottling, and Beverages sector generated N23.26 billion or 5.6 per cent of the total CIT, and Professional Services and Telecoms N18.17 billion or 4.6 per cent.
- State Ministries and Parastatals (N17.35 billion), Manufacturing (N16.25 billion), Oil-producing (N15.36 billion), and Trading (N13.5 billion).
- Breweries, Bottling, and Beverages notched 329.5 per cent in Q1 2021 compared to N5.42 billion in Q1 2020. It also rose 109.3 compared to N11.11 billion in Q4 2020.
- Stevedoring, Clearing and Forwarding was second with N1.6 billion or 73.4 per cent increase compared to N921.92 million in Q1 2020.
VAT
Value added tax (VAT) rose 52.93 per cent to N496.39 billion. This means that Nigeria generated N792.1 billion in Q1 2021 from CIT and VAT, per Nairametrics.
Revenue generated from these taxes represents 86.1 per cent of projected tax revenue of N920.14 billion in the 2021 budget.
With crude oil prices growing in recent weeks and projected to hit $80 per barrel by summer, revenue is expected to witness a moderate increase in subsequent quarters.
