Tax payments from Nigerians and international companies fell by 12% in the first quarter of this year, according to the most recent Company Income Tax report.
In the latest CIT report released by the National Bureau of Statistics on Tuesday, its revenue to the Federal Government decreased to N984.61 billion in Q1 from N1.13 trillion the previous quarter, according to Businessday.
“Local payments received were N386.49 billion, while Foreign CIT Payment contributed N598.13 billion in Q1 2024,” it disclosed.
CIT, often called corporate tax, is a government-imposed fee on a company’s income.
The CIT rate is zero percent for companies with a gross turnover of N25 million or less, twenty percent for enterprises with a gross turnover larger than N25 million but less than N100 million, and thirty percent for large companies with a gross turnover of more than N100 million.
Since President Bola Tinubu announced the withdrawal of petrol subsidies at his inauguration on May 29, pump prices have increased to more than N600, while the value of the naira has plummeted following the currency’s flotation, causing a liquidation of some Nigerian companies.
A closer analysis of the NBS study shows that mining and quarrying provided N80 billion, financial and insurance sectors contributed N72.4 billion, and information and communication contributed N48.5 billion.
Furthermore, revenue from the government’s value-added tax increased by 19.21 percent every quarter to N1.43 trillion in Q1 from N1.20 trillion in Q4 2023.
