The federal government generated a total of N984.32 billion in Company Income Tax (CIT) and Value Added Tax (VAT) in the second quarter of the year (Q2 2021), according to the National Bureau of Statistics (NBS).
While the sum of N472.07 billion was generated from CIT, N512.25 billion was realised from VAT for the period under review.
The CIT generated in Q2, was a 20.23 per cent increase compared with the N392.64 billion recorded in the preceding quarter, the NBS stated.
The positive revenue growth in CIT followed improved performance in companies’ profits which was associated with the gradual recovery of the economy following the adverse impact of the lockdown implemented by the government last year to curtail the spread of the COVID-19 pandemic.
The resumption of economic activities had further spurred consumer spending which helped to increase VAT.
According to the company income tax by sectors Q2 report which was released by the statistical agency, yesterday, professional services generated N130.09 billion, while other manufacturing sector generated N87.27 billion.
Banks and financial institutions generated N60.01 billion, while textile and garment, automobiles and assemblies and pioneering recorded N27.23 million, N62.15 million and N64.30 million respectively.
Out of the total amount generated in Q2, N412.74 billion was generated as CIT locally, while N51.61 billion was generated as foreign CIT payment.
The balance of N2.72 billion was generated as CIT from other payments.
Similarly, the sectoral distribution of VAT report for Q2 showed that the sum of N512.25 billion was generated as VAT compared to N496.39 billion in Q1 and N327.20 billion in Q2 2020. This represented a 3.20 per cent increase quarter-on-quarter and 56.56 per cent growth year-on-year.
Also, other manufacturing generated the highest amount of VAT with N44.89 billion closely followed by professional services which recorded N29.30 billion.
Commercial and trading generated N21.96 billion, while textile and garment industry, pioneering and pharmaceutical, soaps and toiletries generated N77.74 million, N169 million and N188.71 million respectively.
Out of the total VAT generated in the review period, N187.43 billion was generated as non-import VAT locally, while N207.69 billion was generated as non-import VAT for foreign.
The balance of N117.13 billion was generated as NCS-Import VAT.