Company Income Tax generates N416.01 billion for Nigeria generates in Q3 of 2020.

Company Income Tax has generated N416.01 billion for Nigeria in the third quarter of 2020.

This is an increase of 3.48% in the third quarter of 2020, matched to N402.03 billion which was recorded in quarter 2 of 2020.

The N416.01 billion that was generated by the Company Income Tax was made known to the public by the Company Income Tax by Sectors report, which was recently published by the National Bureau of Statistics (NBS).

According to the report published by the National Bureau of Statistics, the total Company Income Tax generated in the third quarter of 2020 increased by 3.48% compared to the N402.03 billion recorded in the second quarter of 2020.

However, It has reduced by 20.13% when comparing the N520.89 billion that was reported in the same quarter (third quarter) of 2019.

Highlights

• The CIT (Company Income Tax) that was generated from the beginning of this year till date is a total sum of N1.11 trillion upon N1.26 trillion that was generated in 2019.
• It was also reported that Professional Services such as the Telecoms company etc, generated the highest amount of Company Income Tax which generated the sum of N55.52 billion, followed Manufacturing companies which generated N42.03 billion.
• N24.05 billion was generated by the Banking & Financial Institutions.

It was also recorded that Out of the total of N416.01 billion generated in the third quarter of 2020, N244.70 billion of the Company Income Tax was generated locally, while N70.34 billion of the CIT was generated as foreign payment.

Other payments sectors generated the remaining balance of N100.97.

The sectors with the highest and lowest Company Income Tax

Automobiles and Assemblies is the sector which experiences the highest increase in the Company Income Tax. The sector experienced an increase in its CIT by 994%, from N81.6 million in Q2 2020 to N892.7 million in Q3.

After the Automobiles and Assemblies sector, the Gas sector was the next sector which also experiences a rapid increase as CIT grew by 626%  which was from N4.76 billion in Q2 to N655.5 million in Q3 of 2020.

They have been a decrease in the CIT generated by the transportation company by 76% which is from N7.35 billion to N31.1 billion.

The Banking sector and financial institutions also experience some deterioration as it reduces by 51% to attain N24.1 billion.

Conclusion

The Federal Government is trying to increase the generation of the CIT from other sectors so as not to be dependent on the oil sector only and this is evident in the increase of the CIT over the year.

However, the COVID-19 pandemic has been a major contributor to the decline in some of the sectors CIT.