VAT and CIT revenue grows 17% in H1 2023
By Jeph Ajobaju, Chief Copy Editor
Value Added Tax (VAT) and Company Income Tax (CIT) yielded N3.48 trillion into the federal treasury in the first half of the year ended June (H1 2033), climbing 17 per cent year-on-year (YoY) from N2.97 trillion in H1 2022.
The latest National Bureau of Statistics (NBS) data shows VAT revenue was N1.49 trillion in H1 2023, up 25 per cent YoY on N1.19 trillion in H1 2022. CIT fetched N1.99 trillion, rising 11.7 per cent YoY from N1.78 trillion.
“On the aggregate, VAT for Q2’23 was reported at N781.35 billion, showing a growth rate of 10.11 percent on a QoQ [quarter-on-quarter] basis from N709.59 billion in Q1’23,” the NBS said.
“Local payments recorded were N512.03 billion, Foreign VAT Payments were N142.63 billion, while import VAT contributed N126.69 billion in Q2’23.
“On a QoQ basis, the activities of extraterritorial organisations and bodies recorded the highest growth rate with 212.06 percent, followed by real estate activities with 123.09 percent.
“On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –57.06 percent, followed by agriculture, forestry, and fishing with –32.86 percent.
“In terms of sectoral contributions, the top three largest shares in Q2’23 were manufacturing with 29.64 percent; information and communication with 21.19 percent; and financial and insurance activities with 11.18 percent.”
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CIT revenue
“On the aggregate, CIT for Q2’23 was reported at N1.53 trillion, indicating a growth rate of 226.40 percent on QoQ basis from N469.01 billion in Q1’23,” the NBS explained, according to Vanguard.
“Local payments received were N1.02 trillion, while Foreign CIT Payment contributed N505.91 billion in Q2 2023.
“In terms of sectoral contributions, the top three largest shares in Q2’23 were manufacturing with 25.63 percent; financial and insurance activities with 24.47 percent and information and communication with 20.3 percent.”