Treasury rakes in N3.5tr; as VAT revenue up 25%, CIT 26%
By Jeph Ajobaju, Chief Copy Editor
Value Added Tax (VAT) and Company Income Tax (CIT) revenue grew to N3.47 trillion in the first nine months of the year (9M 2022), up 25 per cent year-on-year (YoY) from N2.77 billion in 9M 2021.
Latest National Bureau of Statistics (NBS) data shows CIT rose 26 per cent to N1.67 trillion and VAT hiked 25 per cent to N1.8 trillion.
Newly released NBS third quarter (Q3 222) report said CIT notched 13 per cent quarter-on-quarter (QoQ) to N810.19 billion in Q3 2022 from N714.4 billion in Q2 2022.
“Local payments received were N483.17 billion, while Foreign CIT Payment contributed N327.02 billion in Q3 2022.
“On a QoQ basis, the Arts, Entertainment, and Recreation activities recorded the highest growth rate with 93.33 percent, followed by Agriculture, Forestry, and Fishing with 75.38 percent,” the NBS said, according to reporting by Vanguard.
“On the other hand, Accommodation and Food Service activities had the lowest growth rate with -64.8 percent followed by Water supply, Sewerage, Waste Management, and Remediation activities with -64.75 percent.”
NBS disclosed VAT increased 4.0 per cent to N625.39 billion in Q3 2022 from N600.15 billion in Q2 2022.
“Local payments recorded were N367.93 billion, foreign VAT payments were N121.85 billion, while import VAT contributed N135.61 billion in Q3’22.
“In terms of sectoral contributions, the top three largest shares in Q3 2022 were manufacturing with 31.08 percent; Information and communication with 18.5 percent; and Mining & quarrying with 10.95 percent.”
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Banks join MTN and Airtel to collect VAT for treasury
Banks and telecom firms, such as MTN and Airtel, are to collect VAT on their taxable supplies from January 2023 and remit same to the Federal Inland Revenue Service (FIRS).
FIRS Executive Chairman Muhammad Nami gave the approval in a public notice he issued through his Media and Communication Assistant Johannes Wojuola last month.
“This notice is given to all persons carrying on trade, profession or business of any kind, tax practitioners and the general public that, with effect from 1st January, 2023; in line with the provisions of Section 14(3) of the Value Added Tax Act Cap. V1 LFN 2004 (as amended), the following companies are appointed to withhold or collect VAT charged on all taxable supplies made to them: MTN; Airtel; and all money deposit banks – as defined by the CBN Guidelines,” the notice explained.