FG earns N1.56 trn VAT, N2.47 trillion CIT Q2,2024- NB
By Patience Ikpeme
The federal government earned N1.56 trillion from Value Added Tax (VAT) collection in Q2 2024, according to a report by the National Bureau of Statistics (NBS).
This figure represents a 9.11% growth rate on a quarter-on-quarter basis, up from N1.43 trillion in Q1 2024.
The manufacturing sector led VAT contributions with 11.78%, followed by the information and communication sector with 9.02%, and mining and quarrying with 8.79%.
Out of the total, local VAT payments amounted to N792.58 billion, foreign VAT payments were N395.74 billion, and import VAT contributed N372.95 billion in Q2 2024.
On a quarter-on-quarter basis, human health and social work activities recorded the highest growth rate at 98.44%, followed by agriculture, forestry, and fishing at 70.26%, and water supply, sewerage, waste management, and remediation activities at 59.75%.
Conversely, the lowest growth rates were recorded by activities of households as employers, undifferentiated goods- and services-producing activities of households for own use at –46.84%, followed by real estate activities at –42.59%.
The NBS also reported that activities of households as employers and undifferentiated goods- and services-producing activities of households for own use had the smallest share of VAT contributions at 0.00%, followed by activities of extraterritorial organizations and bodies at 0.01%. Water supply, sewerage, waste management, and real estate services each contributed 0.04%.
On a year-on-year basis, VAT collections in Q2 2024 increased by 99.82% compared to Q2 2023.
Similarly, the federal government collected N2.47 trillion in Company Income Tax (CIT) during Q2 2024, indicating a growth rate of 150.83% on a quarter-on-quarter basis, up from N984.61 billion in Q1 2024.
According to the NBS breakdown, local CIT payments amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion in Q2 2024.
Agriculture, forestry, and fishing recorded the highest CIT growth rate at 474.50% on a quarter-on-quarter basis, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.
In contrast, activities of households as employers and undifferentiated goods- and services-producing activities of households saw the lowest growth rate at –30.22%, followed by activities of extraterritorial organizations and bodies at –15.67%, according to the NBS.
Sector-wise, financial and insurance activities held the largest share of CIT contributions at 15.53%, followed by manufacturing with 8.99%, and information and communication with 7.84%.
The smallest sectoral shares came from activities of households as employers and undifferentiated goods- and services-producing activities of households for own use at 0.00%, water supply, sewerage, waste management, and remediation activities at 0.02%, and activities of extraterritorial organizations and bodies at 0.03%.
On a year-on-year basis, CIT collections in Q2 2024 rose by 59.52% from the N1.55 trillion recorded in Q2 2023.
