Company Income Tax Rises 19% To N1.69trn

The National Bureau of Statistics (NBS) has said that revenue from Company Income Tax (CIT) rose by 19.8percent year-on-year (YoY) to N1.69trillion in 2021 from N1.41trillion collected in 2020.
In its CIT report for Q4’21 released, yesterday, NBS noted that on a quarterly basis, CIT declined by 26per cent to N347.81billion in the fourth quarter of last year (Q4’21) from N472.52billion in Q3’21.
The bureau stated that in terms of sectoral contributions, the top three largest shares in Q4’21 were information and communication with N51.05billion, representing 19.72per cent of the total collection, followed by manufacturing with N45.09billion or 17.42per cent of the total collected and financial and insurance activities with N31.06billion or 12per cent of the total.
The report stated: “On the aggregate, CIT for Q4 2021 stood at N347.81billion, a decline by 26.39per cent on a quarter-on-quarter basis from N472.52billion in Q3 2021. Local payments recorded were N258.85billion, while foreign CIT payment contributed N88.96billion.
“On a quarter-on-quarter basis, positive growths were recorded in accommodation and food service activities (116.01percent); activities of extraterritorial organisations and bodies (128.92percent), activities of households as employers, undifferentiated goods and services-producing activities of households for own use (563.56percent); construction(33.32percent); electricity, gas, steam, and air conditioning supply (84.68percent); human health and social work activities (31.47percent); other service activities (37.28percent); professional, scientific and technical activities (51.47percent); public administration and defence, compulsory social security (29.46percent); real estate activities (17.99percent); transportation and storage (2.04percent).
; water supply, sewerage, waste management and remediation activities (26.08percent); and wholesale and retail trade, repair of motor vehicles and motorcycles (13.91percent).
“On the other hand, decreases in collections were recorded in administrative and support service activities (-72.15percent); agriculture, forestry and fishing (-34.52percent); arts, entertainment and recreation (-25.31percent); education (-1.61percent); financial and insurance activities (-5.52percent); information and communication (-4.33percent); manufacturing (-23.21percent); and mining and quarrying (-7.56percent).
“In terms of sectoral contributions, the top three largest shares in Q4 2021 were information and communication (N51.05billion) with 19.72percent; manufacturing (N45.09billion) with 17.42percent; and financial and insurance activities (N31.06billion) with 12.00percent.
“Conversely, activities of households as employers, undifferentiated goods and services-producing activities of households for own use (N189.45million) with 0.07percent; water supply, sewerage, waste management and remediation activities (N328.58million) with 0.13percent; and activities of extraterritorial organisations and bodies (N447.01million) with 0.17percent were top three lowest shares in Q4 2021.
“However, on a year-on-year basis, CIT collections in Q4 2021 increased by 17.61per cent from Q4 2020”.