Company Income Tax Decline By N120.29bn
Total revenue from Company Income Tax dropped by N120.29bn in the fourth quarter of 2020.
The National Bureau of Statistics disclosed this in its report on ‘Company Income Tax by sector’ which was released on Wednesday.
Part of the report read, “Sectoral distribution of Company Income Tax data for Q4 2020 reflected that the sum of N295.72bn was generated as CIT in Q4 2020 as against N416.01bn generated in Q3 2020 and N362.01bn generated in Q4 2019 representing 28.91 per cent decrease quarter-on-quarter and 18.31 per cent decrease year-on-year.
“Professional services including telecoms generated the highest amount of CIT with N32.17bn generated and closely followed by other manufacturing generating N25.64bn, commercial and trading generating N19.41bn while textile and garment industry generated the least and closely followed by mining and local government councils with N104.37m, N136.99m, and N298.73m generated respectively.’
It said out of the total amount generated in Q4 2020, N162.00bn was generated as CIT locally while N63.52bn was generated as foreign CIT payment.
The balance of N70.20bn was generated as CIT from other payments, the report said.
The NBS had earlier disclosed that the Federal Government generated N454.69bn from Value Added Tax in the fourth quarter of 2020.
In its report on ‘Sectoral distribution of Value Added Tax’ for fourth quarter of 2020, it stated, “Sectoral distribution of Value Added Tax data for Q4 2020 reflected that the sum of N454.69bn was generated as VAT in Q4 2020 as against N424.71bn generated in Q3 2020 and N308.48bn generated in Q4 2019 representing 7.06 per cent increase Quarter-on-Quarter and 47.39 per cent increase Year-on-Year.
“Professional services generated the highest amount of VAT with N42.38bn generated and closely followed by other manufacturing generating N39.45bn, commercial and trading generating N21.15bn while mining generated the least and closely followed by pioneering and textile and garment industry with N58.88m, N185.72m and N353.75m generated respectively.”
Out of the total amount generated in Q4 2020, N212.52bn was generated as non-import VAT locally while N143.35bn was generated as non-import VAT for foreign, it stated.