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Income tax dropped by N120.29bn in Q4 — NBS

The federal government’s Company Income Tax (CIT) collections dropped by 28.91 per cent or N120.29 billion in in the fourth quarter of 2020. From the…

The federal government’s Company Income Tax (CIT) collections dropped by 28.91 per cent or N120.29 billion in in the fourth quarter of 2020.

From the N416.01bn generated in the third quarter of last year, the collection dropped to N295.72bn.

The sectoral distribution of CIT data for the fourth quarter released by the National Bureau of Statistics (NBS) showed that CIT collection in the four quarter of 2020 also dropped by 18.31 per cent when compared with the N362.01bn generated in the four quarter of 2019.

Analysis of the report showed that Professional Services, including Telecoms, generated the highest amount of CIT with N32.17bn generated.

This was closely followed by Other Manufacturing, which generated N25.64bn.

The data showed that the Commercial and Trading sector generated N19.41bn while Textile and Garment industry generated the least and closely followed by Mining and Local Government Councils with N104.37m, N136.99m, and N298.73m generated respectively.

Meanwhile, out of the total amount generated in the fourth quarter of 2020, N162bn was generated as CIT locally while N63.52bn was generated foreign CIT payment. The report showed that the balance of N70.20bn was generated as CIT from other payments.