Company Income Tax Drops to N347.81 Billion in O4

James Emejo

Aggregate Company Income Tax (CIT) declined to N347.81 billion in the fourth quarter of 2021 (Q4 2021), the National Bureau of Statistics (NBS) said yesterday.

This represented a 26.39 per cent decline when compared to the N472.52 billion recorded in Q3 2021.

Year-on-year however, CIT collections increased by 17.61 per cent compared to Q4 2020.

The NBS in its CIT Q4 report stated that local payments amounted to N258.85 billion, while foreign CIT payment contributed N88.96 billion.

The decline in company profits may not be unconnected with the prevailing business environment including insecurity, foreign exchange and other government policy.

In terms of sectoral contributions, information and communication N51.05 billion or 19.72 per cent, manufacturing N45.09 billion or 17.42 per cent and financial and insurance activities N31.06 billion or 12 per cent, all accounted for the top three largest shares of CIT Q4.

On the other hand, the top three lowest shares in CIT in the review period included activities of households as employers, undifferentiated goods- and services-producing activities of households for own use which amounted to N189.45 million or 0.07 per cent while water supply, sewerage, waste management and remediation activities contributed N328.58 million or 0.13 per cent as well as activities of extraterritorial organisations and bodies which recorded N447.01 million or 0.17 per cent.

However, on a quarter-on-quarter basis, positive growths were recorded in accommodation and food service activities which accounted for 116.01 per cent while activities of extra-territorial organisations and bodies amounted to 128.92 per cent.

Activities of households as employers, undifferentiated goods and services-producing activities of households for own use accounted for 563.56 per cent while construction stood at 33.32 per cent.

Furthermore, activities in electricity, gas, steam, and air conditioning supply contributed 84.68 per cent to CIT while human health and social work activities recorded 31.47 per cent.

Other service activities contributed 37.28 per cent while professional, scientific and technical activities recorded 51.47 per cent as well as public administration and defense, compulsory social security which amounted to 29.46 per cent of total CIT receipts for the period under review.

Others included real estate activities 17.99 per cent; transportation and storage 2.04 per cent; water supply, sewerage, waste management and remediation activities 26.08 per cent; and wholesale and retail trade, repair of motor vehicles and motorcycles 13.91 per cent.

On the other hand, decreases in collections were recorded in administrative and support service activities which recorded -72.15 per cent; agriculture, forestry and fishing -34.52 per cent; arts, entertainment and recreation -25.31 per cent; education -1.61 per cent; financial and insurance activities -5.52 per cent; information and communication -4.33 per cent; manufacturing -23.21 per cent; and mining and quarrying -7.56 per cent.