The Company Income Tax (CIT) recorded a robust performance in
the second quarter of 2023, posting a total collection of N1.53 trillion, according to National Bureau of Statistics, (NBS).
The feat shows a substantial quarter-on-quarter growth rate of 226.40%, surging from N469.01 billion recorded in the preceding quarter, Q1 2023.
According to the published NBS data and supplied by the Federal Inland Revenue Service (FIRS), for the quarter under review, local payments accounted for N1.02 trillion, while Foreign CIT Payment contributed N505.91 billion
Sectorally,it is evident that water supply, sewerage, waste management, and remediation activities displayed the most striking growth rate of 626.52% on a quarter-on-quarter basis, followed closely by accommodation and food service activities, which registered an impressive growth rate of 585.11%.
In stark contrast, the education sector recorded the lowest growth rate at -15.48%, with public administration and defence, and compulsory social security trailing at 25.46%.
However, the manufacturing sector emerged as the leader, accounting for the lion’s share at 25.63%.
The financial and insurance activities sector closely followed with a significant contribution of 24.47%, while the information and communication sector rounded out the top three with a substantial 20.30% share.
Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use made the least significant contribution, constituting a mere 0.01%.
Activities of extraterritorial organizations and bodies, with 0.06%, and water supply, sewerage, waste management, and remediation activities, with 0.09%, also held relatively small shares.
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In a year-on-year perspective, CIT collections in Q2 2023 displayed remarkable growth, surging by an impressive 114.28% compared to Q2 2022, underscoring the resilience and dynamism of the tax revenue landscape.
Firs, in the first quarter of 2023 reported a revenue collection figure of N5.5 trillion which is a record performance for the agency. For the year 2022, the agency generated revenues of N10.1 trillion.
The Federal government has voiced its move to consolidate all tax collection activities in the FIRS.
The FG hopes to increase revenues from taxes and close the tax gap which it estimates to be in the region of N20 trillion according to the Chair of the Presidential Committee on Fiscal and Tax Reforms.