TheCable

The National Bureau of Statistics (NBS) says Nigeria generated N472.07 billion from company income tax (CIT) in the second quarter of 2021 (Q2 2021).

According to NBS, the figure represents a 20.23 percent and 17.42 percent increase from N392.64 billion and N402.03 billion generated as CIT in the first quarter of 2021 (Q1 2021) and Q2 2020 respectively.

The bureau’s latest report showed that professional services generated the highest amount of CIT with N130.09 billion, a surge of 616.02 percent from N18.17 billion in Q1 2021.

This was followed by other manufacturing sector which generated N87.27 billion, banks & financial institutions (N60.01 billion), commercial and trading (N23.65 billion), and transport and haulage services (N22.24 billion).

Meanwhile, the textile and garment industry generated the least CIT with N27.23 million, an increase by 101.85 percent from N13.49 million in the previous quarter.

Other laggards, automobiles and assemblies (N62.15 million); pioneering (N64.30 million); petro-chemical and petroleum refineries (N84.62 million); and local government councils (N184.62 million), recorded a decline of 15.52 percent, 68.49 percent, 84.81 percent, and 17.84 percent respectively.

“Out of the total amount generated in Q2 2021, N412.74bn was generated as CIT locally while N51.61bn was generated as foreign CIT payment. The balance of N2.72bn was generated as CIT from other payments,” the report reads.

For CIT generated quarter-on-quarter, Q2 2019 revenue was N510.93 billion, Q2 2018 (N471.53 billion), Q2 2017 (N395.54 billion), Q2 2016 (N347.98 billion), while Q2 2015 revenue is the highest in six years with N621.50 billion.

CIT refers to a tax on the profits of registered companies in Nigeria. For example, the CIT rate is 0 percent for companies with a gross turnover of N25 million or less; while it is 20 percent for companies with gross turnover greater than N25 million and less than N100 million.