A total of N714.4 billion was generated from Company Income Tax (CIT) in the second quarter of 2022 a 29.53 per cent increase compared to N551.53 billion generated in the first three months of the year. Most of the income came from the manufacturing, financial services and information technology companies.
Data released by the National Bureau of Statistics (NBS) showed that local payments of CIT totalled N634.01 billion while Foreign CIT payment contributed N80.39 billion in Q2 2022. Manufacturing sector pulled the largest contribution to CIT with N174.68 billion accounting for 27.55 per cent of the total figure.
It was followed by Information and communication which contributed N155.737 billion representing 24.56 per cent of the total figure while Financial and insurance companies accounted for 14.98 per cent with N94.98 billion.
In terms of sectoral contributions, the Activities of households as employers, undifferentiated goods and services-producing activities of households for own use recorded the least share with 0.004 per cent, followed by Activities of extraterritorial organisations & bodies with 0.07 per cent; and Water supply, sewerage, waste management & remediation activities with 0.12 per cent.
On a quarter-on-quarter basis, the Activities of accommodation & food services recorded the highest growth rate with 481.93 per cent with a N6.256 billion contribution to the CIT pool followed by Information & communication with 430.67 per cent, and Transportation & storage with 339.08 per cent.
On the other hand, Activities of extraterritorial organizations & bodies had the lowest growth rate with – 42.59 per cent, followed by Activities of households as employers, undifferentiated goods and services-producing activities of households for own use with -31.80 per cent. However, on a year-on-year basis, CIT collections in Q2 2022 increased by 51.34 per cent from Q2 2021.