The National Bureau of Statistics has revealed that the federal government generated a total of N2.83 trillion from Company Income Tax in 2022, a year on year increase of 116 per cent.
The Bureau disclosed this in its recent CIT report for the fourth quarter of 2022, according to The Cable.
The CIT is one of the government’s revenue-generating mechanisms. It is a tax on the profits of registered companies in Nigeria, and tax on the profits of foreign firms operating in the country also.
The tax is currently charged at the rate of 30 per cent for companies having more than N100 million in turnover, and 20 per cent for companies with a turnover ranging between N25 million and N100 million.
In the latest CIT report from the NBS, in Q1 of 2022, the FG got a total revenue of N551.53 billion; in Q2, the figure increased to N714.40 billion; in Q3, the CIT revenue further increased to N810.19 billion but had a 6.95 per cent decrease in Q4 to N753.88 billion.
The cumulation of all quarterly results give a total of N2.83 trillion revenue yield from tax in 2022.
According to the NBS, the 2022 figure shows that in one year, the federal government increased CIT from N1.69 trillion in 2021 to N2.83 trillion in 2022, which is a 116.75 per cent increase.
In 2021, local payments contributed N1.09 trillion but increased by 36.72 per cent to N1.68 trillion in 2022, while foreign CIT payments amounted to N1.15 trillion in 2022 from N527.62 billion in 2021.
Despite foreign exchange challenges, the manufacturing sector generated the most income tax for 2022 with a contribution of N468.59 billion paid to the FG.
The bureau said the revenue from this sector represents an increase of 114.84 per cent compared to the N207.34 billion recorded in the same period in 2021.
The information and communication sector came second with a N362.26 billion in income tax remittance to the government.
Following was the financial and insurance sector remitted the sum of N208.93 billion as CIT, followed by mining quarrying with a remittance of N141.58 billion.
Other sectors with increased tax revenues include; the public administration and defence, compulsory social security with N95.39 billion remitted; other service activities generated N79.41 billion; and transportation and storage sector remitted N69.65 billion.
