FGN grows VAT, CIT revenue by 25%, generates N3.5trn

Onome Amuge

 

The federal government’s revenue from Value Added Tax (VAT) and Company Income Tax (CIT) grew 25 per cent, year-on-year, to N3.47 trillion  in the first three quarters of the year from N2.77 billion in the corresponding period of 2021.

 

The report, recently published by the National Bureau of Statistics (NBS), showed that CIT rose by 26 per cent to N1.67 trillion while VAT was up 25 percent to N1.8 trillion during the period under review.

In its Q3’22 CIT report, the NBS disclosed that CIT rose quarter-on-quarter  by 13 percent to N810.19 billion in the third quarter of 2022 against N714.4 billion recorded in the previous quarter (Q2’22).

The CIT report further stated that a total of N483.17 billion was received in terms of local, while foreign CIT payment stood at N327.02 billion in Q3 2022.

Notably, the arts, entertainment, and recreation activities recorded the highest growth rate on a quarter on quarter basis at 93.33 percent, followed by agriculture, forestry, and fishing with 75.38 percent.

In contrast, accommodation and food service activities recorded the lowest growth rate with -64.8 percent followed by water supply, sewerage, waste management, and remediation activities which fell 64.75 percent.

The NBS VAT collection report for the third quarter of 2022 showed that VAT increased by 4.0 percent to N625.39 billion from N600.15 billion in Q2’22.

According to the NBS, local payments stood at N367.93 billion, foreign VAT payments were recorded at N121.85 billion, while import VAT contributed to N135.61 billion in the period under review.

In terms of sectoral contributions,manufacturing, information and communication, and mining & quarrying emerged the top three largest shares in Q3 2022 at 31.08 per cent, 18.5 per cent,and 10.95 per cent, respectively.