Nigerians who worked in the wholesale, retail, and repair of cars, motorbikes, and other vehicles between the first quarters of 2022 and 2023 paid a total of N167.45 billion in taxes.
According to The Punch, Value Added Tax and Company Income Tax combined to raise the entire tax.
The Federal Inland Revenue Service reveals that VAT is a consumption tax paid by the ultimate consumer that is 7.5% when products are purchased and CIT is a tax that is levied at a rate of 30% on company profits.
The wholesale and retail sector, as well as the maintenance of motor vehicles and motorcycles, brought in N96.96 billion from VAT and N70.49 billion from CIT for the government.
According to a breakdown of VAT payments, mechanics and merchants made N14.32 billion in Q1 2022, N16.21 billion in Q2, N17.31 billion in Q3, N19.99 billion in Q4, and N29.14 billion in Q1 2023.
According to the breakdown, the amount of VAT collected increased from Q1 2022 to Q1 2023 by N14.82 billion, or 103.49%.
The breakdown for CIT also revealed that mechanics and traders paid N8.3 billion in Q1, N19.81 billion in Q2, N14.46 billion in Q3, N17.89 billion in Q4, and N10.43 billion in Q1 2023.
According to the breakdown, CIT collections increased from Q1 2022 to Q1 2023 by N2.13 billion, or 25.66%.
