FIRS Generates N1.75trn Company Income Tax In Q3 2023
The Federal Inland Revenue Service (FIRS) generated N1.75 trillion in company tax income in the third quarter of 2023, representing 14.27 percent over the previous quarter’s N1.53 trillion.
This figure demonstrates the positive growth and contributions of various sectors to Company Income Tax in Q3 2023, highlighting the importance of effective tax management and the potential for further economic development.
Data from the National Bureau of Statistics (NBS) shows that the growth was driven by both local and foreign CIT payments, with N651.63 billion contributed locally and N1.10 trillion from foreign sources.
Sectoral analysis shows the education sector stood out with an impressive 59.60 percent growth rate, followed closely by public administration and defence, and compulsory social security, which recorded a growth rate of 57.04 percent.
On the other end of the spectrum, activities such as households as employers and undifferentiated goods and services producing activities of households for own use experienced a decline with a growth rate of -74.3 percent. Similarly, water supply, sewage, waste management, and remediation activities dropped by -73.25 percent.
Examining the sectoral contributions, the top three sectors in Q3 2023 were information and communication, manufacturing, and mining and quarrying, accounting for 26.18 percent, 23.90 percent, and 11.86 percent respectively.
Conversely, activities of households as employers, undifferentiated goods and services producing activities of households for own use had at least a share at 0.00% followed by water supply sewage, waste management, and remediation activities with 0.04 percent, and activities of extraterritorial organizations and bodies with 0.10 percent.
Looking at the bigger picture, the year-on-year comparison reveals a remarkable increase in CIT collections in Q3 2023, with a growth rate of 115.90 percent compared to Q3 2023.
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