Tax Revenue Hits N3.48trn in H1’23 – Report

Revenue from Value Added Tax (VAT) and Company Income Tax, CIT, grew Year-on-Year (YoY) by 17 percent to N3.48 trillion in the first half of 2023 (H1’23) from N2.97trillion in the corresponding period of 2022, H1’22.

Details of data released by the National Bureau of Statistics, NBS, yesterday also show that VAT revenue stood at N1.49 trillion in H1’23 rising YoY by 25 percent from N1.19 trillion in H1’22.

Similarly, Revenue from CIT rose YoY by 11.7 percent to N1.99 trillion in H1’23 from N1.78 trillion in H1’22.

The NBS report stated: “On the aggregate, VAT for Q2’23 was reported at N781.35 billion, showing a growth rate of 10.11 percent on a QoQ basis from N709.59 billion in Q1’23.

“Local payments recorded were N512.03 billion, Foreign VAT Payments were N142.63 billion, while import VAT contributed N126.69 billion in Q2’23. “On a QoQ basis, the activities of extraterritorial organizations and bodies recorded the highest growth rate with 212.06 percent, followed by real estate activities with 123.09 percent.

“On the other hand, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use had the lowest growth rate with –57.06 percent followed by agriculture, forestry, and fishing with –32.86 percent.

“In terms of sectoral contributions, the top three largest shares in Q2’23 were manufacturing with 29.64 percent; information and communication with 21.19 percent; and financial and insurance activities with 11.18 percent.”

In its Q2’23 CIT report NBS said: “On the aggregate, CIT for Q2’23 was reported at N1.53 trillion, indicating a growth rate of 226.40 percent on QoQ basis from N469.01 billion in Q1’23.

“Local payments received were N1.02 trillion, while Foreign CIT Payment contributed N505.91billion in Q2 2023.