A total of N532.48 billion from company income tax (CIT) has accrued to the Federal Inland Revenue Service (FIRS) in the first quarter (Q1) of 2022, says the National Bureau of Statistics (NBS).
The Companies Income Tax (CIT) is a tax on the profits of incorporated entities in the country.
According to the CIT report released by the NBS on Thursday, the 2022 First Quarter revenue represents an increase of 53.09 per cent, amounting to N184.67 billion.
“On an annual basis, the Q1 2022 CIT revenue represents an increase of 35.61 per cent as against the N392.65 billion generated in Q1 2021,” the report stated.
“On the aggregate, Company Income Tax (CIT) for Q1 2022 was reported at N532.48 billion, a growth rate of 53.09 per cent on a quarter-on-quarter basis from N347.81billion in Q4 2021. Local payments recorded were N209.13 billion in Q1 2022, while Foreign CIT Payment contributed N323.35 billion,” the Bureau added.
The Bureau noted that local payments were N209.13 billion while foreign CIT revenue amounted to N323.35 billion for the period under review.
The sectoral analysis showed manufacturing with N44.45 billion, information and communication with 29.35 billion and financial and insurance activities with N25.51 billion were the top contributors to CIT in Q1 2022.
On the other hand, households as employers, undifferentiated goods and services-producing activities of households for own use contributed the least CIT for the period with N37.99 million; water supply, sewerage, waste management and remediation activities with 398.81 million; activities of the extraterritorial organisation and bodies with N717.95 million; and real estate activities generated N987.16 million.
“On a quarter-on-quarter basis, the activities of extraterritorial organizations and bodies recorded the highest growth rate with 60.61 per cent, followed by Education with 39.76 per cent, and Construction with 38.98 per cent.
“On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with – 79.94 per cent, followed by accommodation and food service activities with -51.07 per cent. In terms of sectoral contributions, the top three largest shares in Q1 2022 were Manufacturing with 21.31 per cent, Information and communication with 14.03 per cent, and Financial and insurance with 12.20 per cent.
Conversely, the Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.02 per cent, followed by activities of Water supply, sewerage, waste management and remediation with 0.19 per cent, and activities of extraterritorial organizations and bodies with 0.34 per cent. However, on a year-on-year basis, CIT collections in Q1 2022 increased by 35.61 per cent from Q1 2021.”
– Media Report
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