New data from the National Bureau of Statistics (NBS) reveals that taxes from companies and consumers in Nigeria increased by 59.07% year-on-year, reaching N6.19 trillion in the first nine months of 2023.
The total amount paid as Company Income Tax (CIT) and Value Added Tax (VAT) during this period rose from N3.89 trillion in the corresponding 2022 period.
In the reported period, VAT increased by 34.45% to N2.44 trillion from N1.81 trillion, while CIT increased by 80.58% to N3.75 trillion from N2.08 trillion.
This significant increase in tax collections occurred despite economic challenges faced by the nation.
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The NBS, in its VAT report for the third quarter of 2023, stated that VAT for Q3 2023 was reported at N948.07 billion, reflecting a growth rate of 21.34% on a quarter-on-quarter basis from N781.35 billion in Q2 2023.
The manufacturing, information and communication, and financial and insurance sectors were identified as the three largest contributors to VAT.
Regarding CIT collection for the year, the NBS noted that Company Income Tax for Q3 2023 was reported at N1.75 trillion, representing a growth rate of 14.27% on a quarter-on-quarter basis from N1.53 trillion in Q2 2023.
Foreign firms contributed more to CIT than local firms, with local payments of N651.63 billion and foreign CIT payments contributing N1.10 trillion in Q3 2023.
The information and communication, manufacturing, and mining and quarrying sectors were identified as the biggest contributors to CIT in Q3.
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