For Q1 22, the revenue generated from Company Income Tax (CIT) increased to N532.48 billion from N392.7 billion in the corresponding period of 2021, which shows 35.6 % increase
The increase is as a result of the renewed drive by the federal government to boost its revenue through increased collections from non-oil sources on the back of the new Finance Act 2021 which came into effect in January 2022
According to data obtained from the National Bureau of Statistics (NBS), the figure rose by 53.1 per cent Quarter-on-Quarter (Q/Q) from the N347.8 billion generated in Q4’2021.
The analysis of the Q1’22 data further reveals that foreign CIT payments amounted to N323.4 billion, while the local payments amounted to N209.1 billion, representing 60.7 per cent and 39.3 per cent respectively, of the total CIT numbers.
The data also show that foreign CIT payments recorded a 263.5 per cent Q/Q increase and a 175.3 per cent Y/Y increase while local payments declined by 19.2 per cent Q/Q but increased 37.3 per cent
According to analysts at United Capital Plc, "the growth in company tax collected appears to show fruits of the recently amended Company Income Tax law as part of the 2021 Finance Act which became effective January 2022.
"In addition, it reflects sustained post-pandemic recovery in economic activities underpinned by stronger consumer demand.”
“We remain bullish on CIT collections in FY-2022.
"The NRC coverage expansion continues to drive strong collections, softening the impact of weaker local CIT collections.
"In addition, we anticipate local collections will improve as the economy sustains the impressive growth it started the year with.”
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