Tax revenue from manufacturers in the country dropped sharply by 70.24 percent quarter-on-quarter (QoQ) to N43.2 billion in the first quarter of 2024 (Q1’24), down from N145.1 billion in the previous quarter (Q4’23).
This data is from the Company Income Tax (CIT) Q1 2024 report by the National Bureau of Statistics (NBS), which covers tax revenue from both local and foreign manufacturing companies.
The report also showed a year-on-year (YoY) decline of 31.4 percent in tax payments by manufacturers, compared to N62.9 billion recorded in Q1’23.
Corporate Income Tax (CIT), a levy on company income, has different rates: zero percent for companies with a gross turnover of N25 million or less, 20 percent for companies with a gross turnover between N25 million and N100 million, and 30 percent for large companies with a turnover above N100 million.
A breakdown of the NBS report reveals that among 21 sectors, manufacturing, once a top contributor to tax revenue, had the lowest growth rate. Analysis shows that manufacturers’ tax payments in Q1’24 accounted for 11.2 percent of the local CIT of N386.5 billion, compared to 27.2 percent of N533.9 billion in Q4’23 and 20.9 percent of N300.8 billion in Q1’23.
The NBS report added; “On the aggregate, CIT for Q1 2024 was reported at N984.61 billion, indicating a growth rate of -12.87 percent QoQ from N1.13 trillion in Q4 2023. Local payments were N386.49 billion, while foreign CIT payments contributed N598.13 billion in Q1 2024.
“On a QoQ basis, the manufacturing sector had the lowest growth rate at -70.24 percent, followed by the electricity, gas, steam, and air conditioning supply sector at -69.14 percent.”
