- These figures highlight a significant surge in tax collections despite economic challenges throughout the year
The National Bureau of Statistics (NBS) reported a remarkable 59.07 per cent year-on-year increase in tax revenue from companies and consumers, totaling N6.19 trillion in the first nine months of 2023.
Comparing data from the first three quarters of 2023 to the corresponding period in 2022, there was a substantial rise in Company Income Tax (CIT) and Value Added Tax (VAT) payments in the country. VAT surged by 34.45 per cent to N2.44 trillion from N1.81 trillion, while CIT experienced an 80.58 per cent increase to N3.75 trillion from N2.08 trillion.
These figures highlight a significant surge in tax collections despite economic challenges throughout the year.
The NBS’s VAT report for the third quarter of 2023, released on Friday, indicated a quarterly growth rate of 21.34 per cent in VAT collections. Quarter three recorded a total VAT of N948.07 billion compared to N781.35 billion in the previous quarter, showcasing a consistent upward trend in tax revenue.
“Local payments recorded were N522.08bn, Foreign VAT Payments were N204.58bn, while import VAT contributed N221.41bn in Q3 2023.”
The manufacturing, information and communication, and financial and insurance sectors were the three largest contributors to VAT.
Commenting on CIT collection for the year, the statistics body noted, “On the aggregate, Company Income Tax for Q3 2023 was reported at N1.75tn, indicating a growth rate of 14.27 per cent on a quarter-on-quarter basis from N1.53tn in Q2 2023.”
Foreign firms are contributing more to CIT than local firms, and in Q3, “Local payments received were N651.63bn, while Foreign CIT Payment contributed N1.10tn in Q3 2023.” The biggest contributors to CIT in Q3 were the information and communication, manufacturing, and mining and quarrying sectors.