Manufacturing Sector Ranks Top At FIRS Q3 2022 Tax Collection —NBS
The Manufacturing sector, in third Quarter (Q3), 2022 contributed 28.76 per cent to lift tax collection indices of the Federal Inland Revenue Services, (FIRS) overall revenue, according to the National Bureau of Statistics (NBS).
Company Income tax for the third quarter of 2022, according to the NBS indicated that the manufacturing sector, contributed 28.76 per cent in terms of sectoral contributions followed by the ICT sector which contributed 27.31 per cent, while the financial services sector ranked third at 8.81 per cent in the revenue contribution.
The NBS noted that the aggregate Company Income Tax (CIT) recorded was N810.19 billion for Q3 2022.
The report added that this shows a growth rate of 13.41 per cent on a quarter-on-quarter basis from N714.40 billion in Q2 2022.
The report also noted that local payments received amounted to N483.17 billion, while foreign CIT payment contributed N327.02 billion in Q3 2022.
The NBS report stated that on a quarter-on-quarter basis, the arts, entertainment, and recreation activities recorded the highest growth rate with 93.33 per cent, followed by agriculture, forestry, as well as fishing with 75.38 per cent.
However, the report noted that accommodation and food service activities had the lowest growth rate at 64.81 per cent.
This was followed by water supply, sewerage, waste management, and remediation activities at -64.75 per cent, according to the report.
The Bureau also stated that tax collections from the Information Communications Technology (ICT) sector rose to N131.97 billion as against N53.36 billion in the corresponding period in 2021.However, it noted that on quarter by quarter comparison, tax collection fell by 15.26 from N155.74 billion.
Recall that the Federal Government made certain amendments to the Finance Act 2022, as part of the drive to increase its revenue from non-oil sources and support the implementation of the 2022 budget.
The amendment saw the introduction of taxes on Non-Resident Companies (NRCs) with digital presence in Nigeria.
Section 30 was amended by introducing a new sub-section that allows the government to assess non-resident companies with a digital Significant Economic Presence (SEP) in Nigeria; to tax on a fair and reasonable percentage of their turnover attributable to the SEP in the instance where there is no assessable profit, or the assessable profit is less than what is to be expected from that type of business or that cannot be ascertained.
Following the increased activities in the information and communication technology (ICT) ecosystem, especially on the heels of the outbreak of COVID-19, Company Income Tax (CIT) from ICT firms rose Year-on-Year (YoY) by a huge 147.30 per cent in the third quarter (Q3) ended September 30.