Federal Govt Collects N1.45trn VAT, CIT In Q4

The federal government in the last three months of 2022 had raked in N1.45 trillion through Company Income Tax (CIT) and Value Added Tax (VAT) a figure that is higher than N1.435 trillion which it raked in the third quarter of 2022.

Latest data released by the National Bureau of Statistics (NBS) showed that the aggregate CIT received in the last three months of 2022 was lower than what was collected in the third quarter of the year under review.

However, the amount collected as Value Added Tax in the fourth quarter of 2022 was higher than what was collected the previous year. According to the Sectorial Distribution of Value Added Tax in Q4 2022, released by the NBS, on the aggregate, VAT for the period stood at N697.38 billion, showing a growth rate of 11.51 per cent on a quarter-on-quarter basis from N625.39 billion in Q3 2022.

The report by NBS showed that N408.12 billion was recorded as local payments, while foreign VAT payments were N159.83 billion. Also, Import VAT contributed N129.43 billion in Q4 2022. On a quarter-on-quarter basis, the Arts, entertainment, and recreation activities recorded the highest growth rate with 43.82 per cent, followed by Human health and social work activities with 35.82 per cent.

On the other hand, Agriculture, forestry and fishing had the lowest growth rate, declining by 30.12 per cent, followed by Activities of extraterritorial organizations and bodies with a 19.81 per cent decline.

In terms of sectoral contributions, the top three largest shares in Q4 2022 were Manufacturing with 32.17 per cent; Information and communication with 18.05 per cent; and Public administration and defence, compulsory social security with 9.87 per cent.

Conversely, activities of households as employers, undifferentiated goods- and services-producing activities of households for own use recorded the least share with 0.01 per cent, followed by Activities of extraterritorial organizations and bodies with 0.05 per cent; and Water supply, sewerage, waste management, and remediation activities with 0.07 per cent. However, on a year-on-year basis, VAT collections in Q4 2022 increased by 23.71 per cent from Q4 2021.

Meanwhile Company Income Tax (CIT) collected in Q4 2022 stood at N753.88 billion, indicating a 6.95 per cent decline on a quarter-on-quarter basis from N810.19 billion in Q3 2022. Local payments received were N353.90 billion, while Foreign CIT Payment contributed N399.98 billion in Q4 2022.

On a quarter-on-quarter basis, the Water supply, sewerage, waste management and remediation activities recorded the highest growth rate with 57.40 per cent, followed by Activities of households as employers, undifferentiated goods- and services-producing activities of households for own use with 45.19 per cent. On the other hand, Information and communication activities had the lowest growth rate with – 65.75 per cent, followed by Arts, entertainment and recreation activities with -64.09 per cent.

In terms of sectoral contributions, the top three largest shares in Q4 2022 were Manufacturing with 31.20 per cent; Financial & insurance activities with 12.96 per cent and Information and communication activities with 12.77 per cent.

On the other hand, the Activities of households as employers, undifferentiated goods- and services producing activities of households for own use recorded the least share with 0.01 per cent, followed by Water supply, sewerage, waste management, and remediation activities with 0.12 per cent; and Activities of extraterritorial organisations and bodies with 0.14 per cent. However, on a year-on-year basis, CIT collections in Q4 2022 increased by 116.75 per cent from Q4 2021.