*Company Income Taxes rise 13.4% to N810.19bn in Q3 2022
The Federal Government generated N625.39 billion as value-added tax (VAT) in the thirdQ3) quarter of 2022, according to the National Bureau of Statistics (NBS) survey report which also said the government collected a total sum of N810.19 billion as Company Income Tax (CIT) during the period under review.
The VAT and CIT reports for the third quarter were released by NBS on Monday, December 19, 2022.
VAT is a consumption tax that is administered by the Federal Inland Revenue Service (FIRS). Revenue generated from VAT is usually disbursed to the three tiers of government through the federation accounts allocation committee (FAAC).
In its latest report on the sectoral distribution of VAT for Q3 2022, released on Monday, the NBS said the figure represents an increase of 4.21 per cent from the N600.15 billion generated in Q2 2022.According to the report, local VAT payments amounted to N367.93 billion in Q3 2022.
“On the aggregate, value-added tax (VAT) for Q3 2022 was reported at N625.39 billion, showing a growth rate of 4.21 per cent on a quarter-on-quarter basis from N600.15 billion in Q2 2022,” the report reads.
“Local payments recorded were N367.93 billion, foreign VAT payments were N121.85 billion, while import VAT contributed N135.61 billion in Q3 2022.
“On a quarter-on-quarter basis, the arts, entertainment, and recreation supply activities recorded the highest growth rate with 61.09 per cent, followed by activities of extraterritorial organisations and bodies with 44.47.”
The NBS report also shows that activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with -56.37 per cent, followed by water supply, sewerage, waste management, and remediation activities with -32.02 per cent.
“In terms of sectoral contributions, the top three largest shares in Q3 2022 were manufacturing with 31.08 per cent, information and communication with 18.52 percent, and mining and quarrying with 10.95 per cent,” NBS said.
“Conversely, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01 per cent, followed by activities of extraterritorial organisations and bodies with 0.06 per cent, and water supply, sewerage, waste management, and remediation activities with 0.08 per cent.”
Meanwhile, on a year-on-year basis, VAT collections in Q3 2022 increased by 24.95 per cent from Q3 2021.
The Federal Government also collected a total sum of N810.19 billion as Company Income Tax (CIT) for the third quarter (Q3) of 2022.
This represents a growth rate of 13.41% on a quarter-on-quarter basis when compared to the N714.40 billion that was collected in the second quarter (Q2) of 2022.
The NBS in the report stated that the local payments received were N483.17 billion, while Foreign CIT Payment contributed N327.02 billion in the third quarter of 2022.