By Adedapo Adesanya
Company Income Tax (CIT) collected in Nigeria in the third quarter of 2022 grew by 13.4 per cent to N810.19 billion from N714.40 billion in Q2 2022, the latest data from the National Bureau of Statistics (NBS) has revealed.
CIT is a tax imposed on the profit of a company from all sources. According to the Federal Inland Revenue Service (FIRS), this is 30 per cent of the total profit of a company.
However, on a year-on-year basis, CIT collections in Q3 2022 increased by 71.46 per cent from Q3 2021.
According to the NBS in the Company Income Tax Q3 2022 report released on Monday, local payments received were N483.17 billion, while Foreign CIT Payment contributed N327.02 billion in Q3 2022.
On a quarter-on-quarter basis, the arts, entertainment, and recreation activities recorded the highest growth rate with 93.33 per cent, followed by Agriculture, forestry, and fishing with 75.38 per cent.
On the other hand, accommodation and food service activities had the slowest growth rate, with – 64.81 per cent, followed by Water supply, sewerage, waste management, and remediation activities with -64.75 per cent.
In terms of sectoral contributions, the top three largest shares in Q3 2022 were Manufacturing with 28.76 per cent, Information and communication with 27.31 per cent, and Financial & insurance with 8.81 per cent.
Conversely, the activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.003 per cent.
It was followed by water supply, sewerage, waste management, and remediation activities with 0.05 per cent; and activities of extra-territorial organizations and bodies with 0.11 per cent.
Dipo Olowookere