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Company tax grows by 226% to N1.5trn in Q2

Company tax grows by 226% to N1.5trn in Q2

Nigeria’s aggregate Company Income Tax (CIT) has more than doubled in the second quarter of 2023 to N1.53 trillion from N469.01 billion recorded in the first quarter of 2023.

“On the aggregate Company Income Tax for Q2 2023 was reported at N1.53 trillion, indicating a growth rate of 226.40 percent on a quarter-on-quarter basis from N469.01 billion in Q1 2023,” the report said.

“On a quarter-on-quarter basis, water supply, sewerage, waste management, and remediation activities recorded the highest growth rate with 626.52 percent, followed by accommodation and food service activities with 585.11 percent,” the report added.

On a year-on-year basis, CIT collections in the second quarter of 2023 increased by 114.28 percent.

Read also: Company tax for Q3 2022 stood at N810.19bn — NBS

However, education had the lowest growth rate with – 15.48 percent, followed by public administration and defence, and compulsory social security with 25.46 percent.

In terms of sectoral contributions, the top three largest shares in Q2 2023 were manufacturing with 25.63 percent; financial and insurance activities with 24.47 percent; and information and communication with 20.30 percent.

However, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01percent, followed by activities of extraterritorial organizations and bodies with 0.06percent; and water supply, sewerage, waste management, and remediation activities with 0.09percent.

Local payments received were N1.02 trillion, while Foreign CIT Payment contributed N505.91 billion in the second quarter of 2023.