Recent data from the National Bureau of Statistics (NBS) reveals a significant increase in Company Income Tax (CIT) collections in Q2-23, reaching its highest quarterly level on record at NGN1.53 trillion. This substantial increase can be attributed to several factors, including a one-off corporate tax payment by NLNG, a return to normalcy in CIT payments following the CBN’s naira-redesign-induced slowdown in Q1-23, and improved tax compliance. Both local and foreign CIT payments saw impressive growth rates. Despite underwhelming demand and rising operation costs, CIT collections are expected to remain robust due to increased voluntary tax compliance and automation of tax administration processes.
VAT collections in Q2-23 also increased by 10.1% q/q to NGN781.35 billion, driven by higher prices of goods and services and improved automation of tax processes. While foreign VAT collections declined, local and NCS-import VAT collections increased. The factors supporting VAT collections are expected to continue, and VAT is anticipated to remain resilient throughout the year.
Recent data from the National Bureau of Statistics (NBS) reveals a significant increase in Company Income Tax (CIT) collections in Q2-23, reaching its highest quarterly level on record at NGN1.53 trillion. This substantial increase can be attributed to several factors, including a one-off corporate tax payment by NLNG, a return to normalcy in CIT payments following the CBN’s naira-redesign-induced slowdown in Q1-23, and improved tax compliance. Both local and foreign CIT payments saw impressive growth rates. Despite underwhelming demand and rising operation costs, CIT collections are expected to remain robust due to increased voluntary tax compliance and automation of tax administration processes.
VAT collections in Q2-23 also increased by 10.1% q/q to NGN781.35 billion, driven by higher prices of goods and services and improved automation of tax processes. While foreign VAT collections declined, local and NCS-import VAT collections increased. The factors supporting VAT collections are expected to continue, and VAT is anticipated to remain resilient throughout the year.
