Data from the National Bureau of Statistics (NBS) has revealed that taxes paid by businesses and consumers increased by 96.11 percent to N2.31 trillion in the second quarter of 2023, a significant increase from the first quarter.
According to the NBS, businesses and consumers collectively paid N1.18 trillion in taxes in Q1 2023. The large increase in taxes collected in Q2 was mostly due to Company Income Tax, which increased by 226.40% quarterly to N1.53 trillion from N469.01 billion in Q1, 2023.
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According to the National Bureau of Statistics’ most recent data on company income tax, companies in Nigeria paid the government around N1.53 trillion in taxes during the second quarter of 2023. The Federal Inland Revenue Service describes CIT as a 30% tax levied on business profits.
This is the first quarter that businesses have paid above N1 trillion, according to NRTC checks. The NBS statistics that was made available indicated that the amount collected in Q2 2023 exceeded the entire amounts collected in 2015 ($1.38 trillion), 2016, ($1.02 trillion), 2017, ($1.25 trillion), and ($1.41 trillion) combined.
The previous highest amount collected was N810.19bn in Q3 2023, while the lowest was N155.96bn in Q1 2017.
VAT, a 7.5 per cent consumption tax borne by the final consumer of a product, only increased by 10.11 per cent q-o-q in Q2 to N781.35bn from N709.59bn in Q1.
Commenting on the taxes, the NBS said, “On the aggregate, CIT for Q2 2023 was reported at N1.53tn, indicating a growth rate of 226.40 per cent on a quarter-on-quarter basis from N469.01bn in Q1 2023. Local payments received were N1.02tn, while Foreign CIT Payment contributed N505.91bn in Q2 2023.”
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