Nigeria's tax earnings from companies have seen a significant surge, increasing by 39% to N5.22 trillion. This growth is largely attributed to the improved economic activities in 2022, following the COVID-19 pandemic.
In 2022, the federal government generated N5.34 trillion from Company Income Tax (CIT) and Value Added Tax (VAT), representing a 40.5% increase from the previous year. The CIT collections rose by 72.56% to N2.83 trillion, while VAT collections increased to N2.51 trillion.
The National Bureau of Statistics (NBS) reported that local CIT payments accounted for 59.4% of the total CIT, with manufacturing, ICT, and finance & insurance sectors being the largest contributors. Foreign CIT payments accounted for 40.6% of the total CIT.
However, despite this growth, there are concerns about the survival of businesses, particularly small and medium-sized enterprises (SMEs), due to the challenging economic environment.
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