Conglomerate income taxes rise by 273 per cent year-on-year

Company income tax (CIT) realised in the second quarter (Q2) stood at N1.46 billion, up from N0.39 billion realised the same period last year.

This translates to a 273 per cent increase, which suggests a much-improved company performance compared with last year.

Unlike the last quarter, the economy was locked down in Q2 last year the global community battled to contain the spread of the COVID-19 pandemic.

According to data sourced from the National Bureau of Statistics (NBS), the amount realised from the sector in Q2 was also 157 per cent higher quarter-on-quarter (QoQ). About 633 million was realised from the crucial sector in Q1

Overall, N472.07 billion was realised from CIT in the quarter being reviewed as against N392.64 billion generated the preceding quarter and N402.03 billion posted for the corresponding period of 2020. This represents 20.23 per cent QoQ improvement 17.42 increase year-on-year (YoY).

“Professional Services generated the highest amount of CIT with N130.09bn generated and closely followed by Other Manufacturing which generated N87.27 billion, banks and financial institutions generated N60.01billion while textile and garment industry generated the least and closely followed by automobiles and assemblies and pioneering with N27.23m, N62.15m and N64.30m generated respectively.

“Out of the total amount generated in Q2 2021, N412.74 billion was generated as CIT locally while N51.61billion was generated as foreign CIT payment. The balance of N2.72 billion was generated as CIT from other payments,” NBS disclosed.