NBS reveals taxes from companies, consumers hit N6.19tn

The NBS has reported that in the first nine months of 2023, taxes collected from businesses and consumers increased by 59.07 percent to N6.19 trillion.

According to data from the National Bureau of Statistics, during the first three quarters of 2023, the total amount paid in the country as Value Added Tax and Company Income Tax increased to N6.19tn from N3.89tn during the same period in 2022.

Despite a difficult year for the country’s economy, there was a notable improvement in tax collections during the reporting period, as seen by the increases in CIT (to N3.75tn) from N2.08tn and VAT (to N2.44tn) from N1.81tn.

In the VAT report for the third quarter of 2023, the NBS said, “On the aggregate, Value Added Tax for Q3, 2023 was reported at N948.07bn, showing a growth rate of 21.34 per cent on a quarter-on-quarter basis from N781.35bn in Q2, 2023.

“Local payments recorded were N522.08bn, Foreign VAT payments were N204.58bn, while import VAT contributed N221.41bn in Q3, 2023.”

The manufacturing, information and communication, and the financial and insurance sectors were three largest contributors to VAT.

Commenting on CIT collection for the year, the statistics body noted, “On the aggregate, Company Income Tax for Q3, 2023 was reported at N1.75tn, indicating a growth rate of 14.27 per cent on a quarter-on-quarter basis from N1.53tn in Q2, 2023.”

Foreign firms are contributing more to CIT than local firms, and in Q3, “Local payments received were N651.63bn, while Foreign CIT Payment contributed N1.10tn in Q3 2023.”