Strong 17% increase in tax revenue reaches N3.48 trillion in H1’23

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Strong 17% increase in tax revenue reaches N3.48 trillion in H1’23
Strong 17% increase in tax revenue reaches N3.48 trillion in H1’23

Revenue stemming from Value Added Tax (VAT) and Company Income Tax (CIT) demonstrated substantial year-on-year (YoY) growth, surging by 17 percent to reach N3.48 trillion in the initial half of 2023 (H1’23) from N2.97 trillion in the corresponding period of 2022 (H1’22).

According to data released by the National Bureau of Statistics (NBS), VAT revenue alone totaled N1.49 trillion in H1’23, marking an impressive YoY increase of 25 percent compared to N1.19 trillion in H1’22. Similarly, revenue from CIT witnessed a YoY rise of 11.7 percent, reaching N1.99 trillion in H1’23, in contrast to N1.78 trillion in H1’22.

Q2 2023 VAT reaches N781.35 billion, showing 10.11% growth

The NBS report offered detailed insights into the second quarter of 2023, revealing that VAT amounted to N781.35 billion, indicating a growth rate of 10.11 percent on a quarter-on-quarter (QoQ) basis from N709.59 billion in Q1’23.

The breakdown showed local payments at N512.03 billion, foreign VAT payments at N142.63 billion, and import VAT contributing N126.69 billion in Q2’23.

Regarding sectoral contributions, manufacturing dominated in Q2’23 with 29.64 percent, followed by information and communication at 21.19 percent, and financial and insurance activities at 11.18 percent.

For CIT in Q2’23, NBS reported a total of N1.53 trillion, displaying an impressive growth rate of 226.40 percent on a QoQ basis from N469.01 billion in Q1’23. Local payments received accounted for N1.02 trillion, while foreign CIT payments contributed N505.91 billion during Q2 2023.

In terms of sectoral contributions in Q2’23, manufacturing retained the lead with 25.63 percent, followed by financial and insurance activities with 24.47 percent, and information and communication at 20.3 percent.