Consumers and corporations rendered approximately N1.18tn in taxes to the government during the first quarter of 2023, as stated in the most recent findings published by the National Bureau of Statistics.
This signifies a minor rise from the N1.14tn generated in Q1 2022.
The N1.18tn sum was derived from Value Added Tax (VAT) and Company Income Tax (CIT).
During Q1 2023, the government amassed N709.59bn from VAT and N469.01bn from CIT. The Federal Inland Revenue Service explains that CIT is a 30 percent levy imposed on a company’s earnings. VAT is a 7.5 percent consumption tax levied upon purchasing goods and services, which the end consumer ultimately bears.
The National Statistics Bureau reveals that the leading contributors to VAT are the manufacturing, information and communication, and mining and quarrying sectors.
The VAT report states, “Value Added Tax for Q1 2023 amounted to N709.59bn, exhibiting a 1.75 percent growth rate on a quarter-on-quarter basis, compared to N697.38bn in Q4 2022.
“Domestic payments accounted for N436.10bn, Foreign VAT Payments reached N151.13bn, while import VAT contributed N122.37bn in Q1 2023.”
Furthermore, it adds, “Regarding sectoral contributions, manufacturing held the largest share at 29.65 percent in Q1 2023, followed by information and communication at 19.29 percent, and mining & quarrying at 12.24 percent.”
The report also highlights that VAT collections in Q1 2023 rose by 20.56 percent yearly compared to Q1 2022.
Regarding CIT, the top three sectors that contribute to it are financial and insurance activities, manufacturing, and information and communication.
The CIT report reveals, “Company Income Tax for Q1 2023 amounted to N469.01bn, indicating a quarter-on-quarter growth rate of -37.79 percent, compared to N753.88bn in Q4 2022.
“Domestic payments received amounted to N300.78bn, while Foreign CIT Payment contributed N168.23bn in Q1 2023.”