Company Income Tax Falls by N124 Billion in Q4

Company Income Tax Falls by N124 Billion in Q4

Company Income Tax (CIT) recorded a N124.71 billion decline from N472.52 billion in the third quarter of 2021 to N347.81 billion in the fourth quarter, according to the latest report by the National Bureau of Statistics (NBS).

The Bureau hints about the development in its “Company Income Tax (CIT) for the fourth quarter of the fiscal year 2021. It also said that on a year-on-year basis, CIT collections in the period under review increased by 17.61 per cent from quarter four, 2020.

The report said that the Information and Communication sector accounted for the highest CIT at N51.05 billion, followed by Manufacturing at N45.09 billion, while Financial and Insurance Services and Mining and Quarrying accounted for N31 billion each.

However, activities of households as employers, undifferentiated goods and services-producing activities of households for own use at N189.44 million accounted for the lowest remittance of CIT, though it recorded a 563.56 per cent growth.

This was followed by activities of extraterritorial organisations and bodies which remitted N447.01 million and water supply, sewerage, waste management and remediation activities which accounted for N328.57 million.

It said real estate activities stood at N1.68 billion, and human health and social work activities accounted for N2.83 billion.

The NBS said that on a quarter-on-quarter basis, positive growths were recorded in accommodation and food service activities (116.01 per cent); activities of extraterritorial organisations and bodies (128.92 per cent).

Growths were also recorded in construction at N5.384 billion (33.32 per cent) and electricity, gas, steam and air conditioning supply N5.17 billion (representing 84.68 per cent).

“On the other hand, decreases in collections were recorded in administrative and support service activities, the sector declined by 72.15 per cent, agriculture, forestry and fishing fell by 34.52 per cent, and arts, entertainment and recreation shed 25.31 per cent.

“Others are education which tumbled by 1.61 per cent, financial and insurance activities dipped by 5.52 per cent, information and communication dropped off 4.33 per cent, manufacturing lowered by 23.21 per cent and mining and quarrying plunged by 7.56 per cent.”

The report said that local CIT payments recorded N258.85 billion, while foreign CIT payments stood at N88.96 billion. Read: Nigeria Sees Higher Revenue from Company Tax in Q3, VAT Drops

The NBS said that data for the report was provided by Federal Inland Revenue Service (FIRS), verified and validated by NBS. #Company Income Tax Falls by N124 Billion in Q4