It’s five months into the year already and all financial indicator points to the Company Income Tax taking off from where it stopped in 2020. The CIT’s impressive run last year represented one of the major successes in the nation’s Internally Generated Revenue drive and if the first quarter report of the National Bureau of Statistics is anything to go by, the surge in CIT is showing resilience.
In a breakdown of the recently released data from NBS, the total CIT collected in the first quarter of 2021 alone experienced an increment amounting to ₦97.09 billion from the last quarter analysed which was Q4 2020.
In actual figures, recall that from the fourth quarter in 2020, the nation realized the sum of ₦295.72 billion compared to the recently declared ₦392.77 billion for the first quarter of 2021.
By percentage, the sum declared represents a 32.82 percent Quarter-on-Quarter increase and 32 percent Year-on-Year increase.
On sectors where more CIT was generated from, bottling and beverages ranked top with a whopping ₦23.26bn generated closely followed by Professional Services including Telecoms which generated ₦18.17bn, State Ministries & Parastatals generated ₦17.35bn.
On the downside, the Textile and Garment Industry generated the least and closely followed by Mining, Automobiles, and Assemblies with ₦13.49m, ₦34.40m, and ₦73.57m generated respectively.
Going by the data, ₦152.33bn represents the amount generated locally from CIT while ₦184.59bn from foreign CIT payment. This leaves a balance of ₦55.85bn which according to the NBS came as CIT from other payments.
NBS’ recent release
”Its Data on Company Income Tax breakdown by sectors for Q1 2021 reflected that the sum of ₦392.77bn was generated as CIT as against ₦295.72bn generated in Q4 2020 and ₦295.68bn generated in Q1 2020.
This represents 32.82 percent increase Quarter-on-Quarter and 32.84 percent increase Year-on-Year”.
Earlier this year, Taxmobile.Online updated that monies generated from the duo of Value-added Tax VAT, and CIT accounts for a whooping ₦2.94 trillion making it the highest source of non-oil revenue for Q4 2020. The figure is about 10 percent higher than the ₦2.68 billion recorded in 2019.