FG generates N295.72bn as CIT in 4Q

The recent report from the National Bureau of Statistics revealed that revenue of N295.72 billion was generated as Company Income Tax in the fourth quarter of 2020.

This represents a drop of N120.29 billion or 28.92 per cent quarter by quarter compared with N416.01 billion recorded in the third quarter of 2020. It also declined year on year by N66.29 billion or 18 31 per cent against N362.01billion reported in the corresponding period of 2019.

The report showed that Professional Services including Telecoms generated the highest in CIT, amounting to N32.17 billion. It was closely followed by Other Manufacturing with an account of N25.64 billion while Commercial and Trading generated N19.41 billion.

Textile and Garment industry generated the least and closely followed by Mining and Local Government Councils with N104.37 million, N136.99 million, and N298.73 million generated respectively.

It further showed that Out of the total amount generated in fourth quarter of 2020, N162.00 billion was generated as CIT locally while N63.52 billion was generated foreign CIT payment while the balance of N70.20 billion was generated as CIT from other payments.

A breakdown of the amount collected during the year showed that the revenue from both the Company Income Tax (CIT) and the Value Added Tax (VAT) rose by 9.61 per cent year on year to N2.94 trillion in 2020 as against N2.68 trillion reported in 2019 despite COVID-19 pandemic.

The Significant portion of the

tax revenue came from Telecoms sector withN289.80 billion, accounting for 11.65 per cent of the total CIT and VAT revenue collected in 2020.

The tax collected amounts from sectors such as Commercial and Trading, Banking and Institutions, as well as Breweries, Bottling and Beverages sectors were N145.98 billion or 4.96 per cent, N121.17 billion or 4.12per cent) and N112.84 billion or 3.84 per cent respectively.

Further breakdown showed that revenue from CIT stood at N1.41 trillion in 2020, declining by 5.92 per cent from N1.50 trillion recorded in 2019. For VAT, total amount collected rose y-o-y by 29.26 per cent to N1.53 trillion in 2020, from N1.18 trillion printed in 2019.

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