Top 10: Mining, Finance, Other Sectors That Paid The Biggest Tax in Q1 2024
- The federal government's revenue from company income tax (CIT) fell by 12% in the first quarter of this year
- The revenue dropped from N1.13 trillion in Q4 to N984.61 billion in Q1, according to data from the National Bureau of Statistics
- The top-paying sectors include mining and quarrying, manufacturing, financial and insurance activities and others
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
New data indicates that in the first quarter of this year, the Federal Government's revenue from Company Income Tax (CIT) decreased by 12%.
Source: Getty Images
Corporate tax, or CIT, is a tax that the government levies on the earnings of businesses.
The CIT rate is set at zero percent for businesses with gross turnover of less than N25 million, twenty percent for those with a gross turnover of more than N25 million but less than N100 million, and thirty percent for major businesses with a turnover of more than N100 million.
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Data from the National Bureau of Statistics (NBS) show that the revenue decreased from N1.13 trillion in Q4 to N984.61 billion in Q1. It rose to 109% from N469 billion in Q1 2023 on an annual basis.
It disclosed,
“Local payments received were N386.49 billion, while Foreign CIT Payment contributed N598.13 billion in Q1 2024."
Analysis of individual sectors is highlighted thus;
Mining and quarrying
Over the first three months of the year, the Mining and Quarrying sector, which makes up the highest contribution, upped its CIT contributions to N80.9 billion, up 21.3% from N66.7 billion in the previous quarter.
Financial and insurance activities
The financial and insurance sector's CIT contributions increased by 2.56% from N70.5 billion to N72.4 billion in the first quarter.
Information and communication
The federal government received N48.5 billion from the information and communication sector in the first quarter of this year. However, compared to the N52.1 billion it paid in the prior quarter, the industry paid 6.88 per cent less in taxes.
Manufacturing
The manufacturing sector's business income tax increased to N43.1 billion in the year's first quarter. However, from N145.1 billion in the previous quarter, manufacturers paid 70.4% less in taxes.
Public administration and defence, compulsory social security
In the first three months of the year, the public administration, defense, and mandatory social security upped their CIT contributions to N42.6 billion, up 24.5% from N34.2 billion in the preceding quarter.
Wholesale and retail trade, repair of motor vehicles and motorcycles
In the first quarter of the year, the federal government received N16.1 billion from the wholesale and retail trade, auto repair, and motorcycle industry. Nonetheless, compared to the N26.7 billion it paid in the prior quarter, the industry paid 39.7% less in taxes.
Transportation and storage
The transportation and storage industry's firm income tax increased to N12.9 billion in the first quarter of the year. Transporters did, however, pay 45.5% less in taxes than they did in the prior quarter ($23.7 billion).
Other service activities
The other service activities sector contributed N11.4 billion in the first quarter, a 52.5% drop from N24.04 billion reported in the previous quarter.
The sector encompasses a broad range of services such as personal service, repair service, etc.
Professional, scientific and technical activities
The first quarter's contribution from professional, scientific, and technological activities was N11.2 billion, down 14.5% from the N13.1 billion recorded in the preceding quarter.
Construction
The first quarter's contribution from the construction industry was N10.6 billion, down 32.9% from the N15.8 billion recorded in the preceding quarter.
FG set to give new order on tax payment
Legit.ng reported that the federal government may have started a plan to stop paying import tariffs on medications, core foods, and other necessities for a six-month period. This move is likely an attempt to control inflation.
This was stated in the "Inflation Reduction and Price Stability (Fiscal Policy Measures) Order 2024," an executive order that the president is anticipated to issue.
According to Punch, the paper was intended to be signed by the President in April but was missing his signature.
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Source: Legit.ng
