The amount generated from Company Income Tax (CIT) and Value Added Tax (VAT) in Nigeria has continued to increase. According to the data released by the National Bureau of Statistics (NBS), a total of N2.94 trillion was generated from CIT and VAT in 2020.
This is an increase of 9.61% from the N2.68 trillion generated from CIT and VAT in 2019.
In 2020, VAT amounted N1.53 trillion, which represents 47.93% of the total amount while CIT amounted to N1.41 trillion representing 47.93% of the total amount generated.
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The total VAT generated in 2020 is higher than the N1.18 trillion generated from VAT in 2019, whereas the CIT in 2020 is less than the N1.5 trillion generated from CIT in 2019.
CIT and VAT generated in the past five years:
- 2020 – N2,940,603,715,603.13
- 2019 – N2,682,757,255,991.36
- 2018 – N2,524,357,766,382.56
- 2017 – N2,222,243,971,218.82
- 2016 – N1,796,920,201,213.77
Company Income Tax data for Q4 2020 reflected that the sum of N295.72bn was generated as CIT in Q4 2020 as against N416.01bn generated in Q3 2020 and N362.01bn generated in Q4 2019 representing -28.91% decrease Quarter-on-Quarter and -18.31% decrease Year-on-Year.
Out of the total amount generated in Q4 2020, N162.00bn was generated as CIT locally while N63.52bn was generated from foreign CIT payment. The balance of N70.20bn was generated as CIT from other payments.
By sector in 2020, the highest amount of CIT and VAT was generated from “Professional Services inc Telecoms” – N342.58 billion. It was followed by “other manufacturing” with N254.53 billion.
N145.98 billion was generated from Commercial and Trading, N121.17 billion was generated from Banks & Financial Institutions while N112.84 billion was generated from Breweries, Bottling and Beverages.
N26.67 billion and N84.15 billion were generated from Oil Marketing and Oil Producing respectively.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
