FG generates N1.18trn from consumers, companies in Q1 2023

By Onome Amuge

The federal government generated about N1.18tn as taxes from consumers of goods and services in the first quarter of 2023, according to the National Bureau of Statistic (NBS).

The NBS, in its value added tax (VAT) and Company Income Tax (CIT) report, also showed that combined  revenue generated from both taxes, dropped quarter on quarter (QoQ) by 18.6   percent to N1.18 trillion in the first quarter of 2023 (Q1’23) from N1.45 trillion in Q4’22,

However, it was disclosed  that the government recorded an increase in VAT  as it  raised N709.59 billion from VAT  1.75 percent  above N697.38 billion in Q4 ’22. VAT collections in Q1’23 also rose on a year-on-year basis as it increased by  20.6 per cent from Q1’22.

Further breakdown of the VAT  revenue showed that local VAT payments  stood at N436.10 billion, foreign VAT payments were N151.13 billion, while import VAT contributed N122.37 billion to the government’s purse in the first quarter of the year.

“On a QoQ basis, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the highest growth rate with  349.86 percent, followed by construction with 95.64 percent,” the report showed.

In terms of sectoral contributions, the National Bureau of Statistics said the  top three largest shares in the period under review were manufacturing with 29.6 percent; information and communication with 19.29 percent; and mining & quarrying with 12.2 percent.

The NBS, in its its company income tax report for Q1’23 ,  said revenue generated from companies  fell QoQ by 37.8 percent to N469.01 billion from N753.88 billion in Q4’22.

During the period under review, the government  received N300.78 billion from local companies, while it raked in  N168.23 billion from foreign companies.