A review of the recently released Company Income Tax (CIT) report for the first quarter of 2024 has shown that income tax payment by companies in manufacturing, agriculture and 12 others declined by a minimum of 16%.
In total, CIT payments by companies in 14 out of 21 sectors decreased during the first three months of the year, resulting in a 12.87% decline in CIT collection for the quarter.
CIT, collected by the federal government, is levied on companies with a turnover of N25 million and above. The CIT rate is 20% for companies with a gross turnover between N25 million and N100 million, and 30% for companies with a gross turnover exceeding N100 million.
The manufacturing sector experienced the largest decline in CIT payments to the federal government, plummeting by 70.24% from N145.06 billion in Q4 2023 to N43.17 billion in the period under review.
This was closely followed by the electricity, gas, and steam supply sectors, which saw a 69.14% decline in CIT payments from N16.83 billion to N5.19 billion.
The agriculture sector recorded a 59.31% decrease in CIT payments, while the arts and entertainment sector saw a 56.19% decline.
Other sectors with reduced CIT payments include; transport services (-45.49%), wholesale and retail trade (-39.66%), real estate services (-40.64%), other services (-52.47%), human health and social work (-16.20%), construction (-33.06%), accommodation and food services (-31.21%), education (-14.18%), information and communication (-6.88%), and professional, technical services (-13.68%).
Credit: Nairametrics
