Tax revenue experiences a 17% increase, reaching N3.48 trillion in the first half of 2023
The revenue generated from Value Added Tax (VAT) and Company Income Tax (CIT) witnessed a Year-on-Year (YoY) increase of 17%, rising to N3.48 trillion in the first half of 2023 (H1'23) from N2.97 trillion in the same period of 2022 (H1'22).
According to data released by the National Bureau of Statistics (NBS) yesterday, VAT revenue reached N1.49 trillion in H1'23, marking a YoY increase of 25% compared to N1.19 trillion in H1'22.
Similarly, Revenue from CIT saw a YoY rise of 11.7%, reaching N1.99 trillion in H1'23 compared to N1.78 trillion in H1'22.
The NBS report elaborated: "In Q2'23, the total VAT revenue amounted to N781.35 billion, indicating a quarterly growth rate of 10.11% compared to N709.59 billion in Q1'23.
"Among the categories, local payments accounted for N512.03 billion, Foreign VAT Payments contributed N142.63 billion, while import VAT added N126.69 billion in Q2'23. When considering quarter-on-quarter changes, extraterritorial organizations and bodies exhibited the highest growth rate at 212.06%, followed by real estate activities at 123.09%.
Conversely, activities of households as employers, undifferentiated goods and services production for household use showed the lowest growth rate at -57.06%, followed by agriculture, forestry, and fishing at -32.86%."
Regarding sectoral contributions, the leading sectors in Q2'23 were as follows: manufacturing, accounting for 29.64%; information and communication, making up 21.19%; and financial and insurance activities, comprising 11.18%.
In its Q2'23 CIT report, the NBS stated, "In total, CIT for Q2'23 amounted to N1.53 trillion, reflecting a remarkable quarterly growth rate of 226.40% compared to N469.01 billion in Q1'23."
In Q2 2023, local CIT payments amounted to N1.02 trillion, while foreign CIT payments contributed N505.91 billion.
When it comes to sectoral contributions, the leading sectors in Q2'23 were as follows: manufacturing, accounting for 25.63%; financial and insurance activities, making up 24.47%; and information and communication, comprising 20.3%.
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