….As VAT Accruals Rise By 51.60%
Revenue generation data just published by the National Bureau of Statistics (NBS) reflected that despite the lingering headwinds in the economy, revenues from Company Income Tax (CIT) and the consumption tax – Value Added Tax (VAT) – surged in the third quarter of this year compared to what was raked in from the tax sources in the preceding quarter.
The report showed that on a year-on-year basis, CIT collections in Q3 2023 increased by 115.90% from Q3 2022 while VAT revenue increased by 51.60%.
The statistics agency, in its ‘Company Income Tax (Q3 2023)’ report published on its website on Friday, December 8, indicated that on the aggregate, CIT for the quarter under review increased to N1.75 trillion, indicating a growth rate of 14.27% on a quarter-on-quarter basis from N1.53 trillion in Q2 2023.
The Bureau clarified that out of the total collections, local payments received stood at N651.63 billion, while Foreign CIT Payment contributed N1.10 trillion in Q3 2023.
It stated that out that on a quarter-on-quarter basis, education recorded the highest growth rate with 59.60%, followed by public administration and defence, compulsory social security with 57.04%.
On the other hand, the report reflected that activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with -74.34%, followed by Water supply, sewerage, waste management and remediation activities with -73.25%.
According to the agency, in terms of sectoral contributions, the top three largest shares in Q3 2023 were Information and Communication with 26.18%; manufacturing with 23.90%; and mining and quarrying with 11.86%.
Nevertheless, it further disclosed that the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.00% in Q3 2023, followed by water supply, sewerage, waste management, and remediation activities with 0.04% and activities of extraterritorial organizations and bodies with 0.10%.
Similarly, the Bureau reported that on the aggregate, VAT collections in the quarter under review totalled N948.07 billion, showing a growth rate of 21.34% on a quarter-on-quarter basis from N781.35 billion generated from the source in Q2 2023.
The report showed that local payments recorded were N522.08 billion, Foreign VAT Payments were N204.58 billion, while import VAT contributed N221.41 billion in Q3 2023.
The statistics agency further clarified that on a quarter-on-quarter basis, agriculture, forestry and fishing recorded the highest growth rate with 91.87%, followed by the activities of extraterritorial organizations and bodies with 80.25%. On the other hand, real estate had the lowest growth rate with –37.68%, followed by construction with – 9.54%.
This is even as it reported that in terms of sectoral contributions, the top three largest shares in Q3 2023 were manufacturing with 26.51%; information and communication with 19.04%; and financial & insurance activities with 12.31%.
The report also showed that activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.02%, followed by water supply, sewerage, waste management, and remediation activities with 0.06%; and activities of extraterritorial organizations and bodies with 0.10%.
