NB Plc products

OBINNA EZUGWU

Figures from the National Bureau of Statistics (NBS) on Company Income Tax (CIT) breakdown by sectors for the first quarter (Q1) 2021 shows that the sum of N392.77bllion was generated as CIT as against N295.72billion generated in Q4 2020.

Further review of the data showed that N295.68bllion was generated in Q1 2020 representing 32.82 per cent increase Quarter-on-Quarter and 32.84 per cent increase in Year-on-Year.

In the report released on Wednesday, the NBS noted that Breweries, Bottling and Beverages generated the highest amount of CIT with N23.26bllion generated.

This is closely followed by Professional Services including Telecoms which generated N18.17bllion, State Ministries & Parastatals generated N17.35bllion while Textile and Garment Industry generated the least and closely followed by Mining and Automobiles and Assemblies with N13.49million N34.40million and N73.57million generated respectively.

The NBS further disclosed that out of the total amount generated in Q1 2021, N152.33billion was generated as CIT locally while N184.59billion was generated as foreign CIT payment. The balance of N55.85bllion was generated as CIT from other payments.

CIT is a tax on the profits of incorporated entities in Nigeria, it also includes the tax on the profits of non-resident companies carrying on business in Nigeria.

In terms of the increase in sectoral company income tax, the breweries, bottling, and beverages sector recorded an increase of 329.5per cent year-on-year in Q1 2021 compared to N5.42 billion recorded in the corresponding period of 2020. It also increased by 109.3 per cent compared to N11.11 billion recorded in Q4 2020.