Nigerian government made N5.34 trillion as income from the Value Added Tax (VAT) and Company Income Tax (CIT) in 2022, the latest data from the National Bureau of Statistics (NBS) have shown.
VAT revenue in 2022 rose by 21 percent to N2.51 trillion when compared to N2.07 trillion realised in 2021 while CIT revenue rose by 68 percent to N2.83 trillion in 2022 up from N1.68 trillion in 2021.
On a quarterly basis, VAT revenue in the first quarter of 2022 stood at N588.59 billion; N600.15 billion in the second quarter; N625.38 billion in the third quarter, and N697.37 billion in the last quarter of the 2022.
“On the aggregate, Value Added Tax (VAT) for Q4 2022 was reported at N697.38 billion, showing a growth rate of 11.51% on a quarter-on-quarter basis from N625.39 billion in Q3 2022. Local payments recorded were N408.12 billion, Foreign VAT Payments were N159.83 billion, while import VAT contributed N129.43 billion in Q4 2022. On a quarter-on-quarter basis, the Arts, entertainment, and recreation activities recorded the highest growth rate with 43.82%, followed by Human health and social work activities with 35.82%.
“On the other hand, Agriculture, forestry and fishing had the lowest growth rate with –30.12%, followed by Activities of extraterritorial organizations and bodies with –19.81%. In terms of sectoral contributions, the top three largest shares in Q4 2022 were Manufacturing with 32.17%; Information and communication with 18.05%; and Public administration and defence, compulsory social security with 9.87%,” NBS said in its latest report.
On company income tax(CIT), its revenue rose by 68 percent in 2022 to N2.83 trillion from N1.68 trillion in 2021.
“On the aggregate, Company Income Tax (CIT) for Q4 2021 stood at N347.81 billion, a decline by 26.39% on a quarter-on-quarter basis from N472.52 billion in Q3 2021. Local payments recorded were N258.85 billion, while Foreign CIT Payment contributed N88.96 billion,” NBS stated.
The total VAT in 2022 came from non-import local VAT which was N1.27 trillion; non-import foreign VAT of N510.807 billion, and NCS-Import VAT of N521.49 billion.
By sectors, most of the revenues from VAT came from the manufacturing, information and communication, mining and quarrying, and public administration.
VAT revenue from the manufacturing sub sector in 2022 was N477.43 billion, accounting for 32 percent of the domestic VAT revenue and 19 percent of the total VAT revenue in 2022.
Information and communication VAT in 2022 was N268.84 billion. The nation also made N128.66 billion from the mining and quarrying sub sector, as well as N128.66 billion from public administration and defence sub sector.