Here are the sectors that paid the most taxes in the first quarter

New data shows that the federal government’s corporate income tax (CIT) revenue fell by 12 percent in the first quarter of this year.

Its revenue fell to $984.61 billion in the first quarter from $1.13 trillion in the fourth quarter, according to data from the National Bureau of Statistics (NBS). On a year-on-year basis, it increased to 109 percent from N469 billion in the first quarter of 2023.

“Local payments received amounted to N386.49 billion while foreign CIT payments contributed N598.13 billion in the first quarter of 2024,” it disclosed.

Read also: Corporate income tax revenues reached a record high in the second quarter, despite obstacles

The report revealed that in the first quarter, the mining and quarrying sector paid the highest tax at N80 billion, followed by financial and insurance activities with N72.4 billion and information and communication with N48.5 billion.

In terms of growth rate, the highest growth rate was recorded by the activities of households as employers, undifferentiated activities of households in the production of goods and services for their own use (330.42%), followed by activities in the field of administration and auxiliary services with 33.18%. and public administration and defense. , compulsory social insurance – 24.6 percent

CIT, also known as corporate income tax, is a tax levied by the government on a company’s income.

The corporate income tax rate is based on zero percent for companies with a gross turnover of N25 million or less, 20 percent for companies with a gross turnover of more than N25 million and less than N100 million and 30 percent for large companies above N100 million.

Analysis of individual sectors

Mining and quarrying

The mining and quarrying sector, which is the largest tax payer, increased its corporate tax contributions to N80.9 billion in the first three months of the year, up 21.3 percent from N66.7 billion in the previous quarter.

Financial and insurance activities

The sector recorded a 2.56 percent increase in corporate tax contributions, reaching N72.4 billion in the first quarter from N70.5 billion in the previous quarter.

Information and communication

The information and communications sector’s contribution to the federal government increased to $48.5 billion in the first quarter of the year. However, the sector paid 6.88 percent less in taxes compared to the N52.1 billion it paid in the previous quarter.

Production

In the first quarter of the year, corporate income tax on manufacturing companies rose to $43.1 billion. However, manufacturers paid 70.4 percent less tax from N145.1 billion in the previous quarter.

“Manufacturers are not having it easy due to high production costs,” said Abiodun Kayode-Alli, senior tax manager at PwC.

He said the state of the economy affects the amount they contribute to the government in taxes. “Producers pay high taxes.”

He added that apart from the difficult business environment, collections in the first quarter are usually not large because most companies have until June 30 to complete filings and payments. “So they’re basically waiting until then to make the payment.”

Public administration and defense, compulsory social security

Public Administration and Defense and Compulsory Social Security increased their corporate income tax contributions to N42.6 billion in the first three months of the year, up 24.5 percent from N34.2 billion in the previous quarter.

Wholesale and retail trade, repair of motor vehicles and motorcycles

The contribution of the wholesale, retail and motor vehicle and motorcycle repair sectors to the federal government increased to US$16.1 billion in the first quarter of the year. However, the sector paid 39.7 percent less in taxes than the N26.7 billion it paid in the previous quarter.

Transport and storage

In the first quarter of the year, the income tax of companies in the Transport and warehousing sector increased to N12.9 billion. However, transporters paid 45.5 percent less tax from N23.7 billion in the previous quarter.

Other service activities

The other services sector contributed N11.4 billion in the first quarter, down 52.5% from the N24.04 billion recorded in the previous quarter.

This sector covers a wide range of services such as personal service, repair services, etc.

Professional, scientific and technical activities

Professional, scientific and technical activities contributed N11.2 billion in the first quarter, down 14.5% from the N13.1 billion recorded in the previous quarter.

Construction

The construction sector contributed N10.6 billion in the first quarter, down 32.9% from the N15.8 billion recorded in the previous quarter.