Home Business Capital Company Income Taxes Collections Declined In Q4 2020
Capital

Company Income Taxes Collections Declined In Q4 2020

Share
Share

February 2, 2021/Proshare

by CSL Research

Recent data on collection of Company Income Taxes (CIT) published by the National Bureau of Statistics (NBS) for the last quarter (Q4) of 2020, showed that total CIT collections for Q4 2020 was N295.7bn, down 18.31% y/y compared with N362.0bn collected in Q4 2019 and also lags 28.9% on a q/q basis compared to Q3 2020’s N416.0bn. In 2020 overall, CIT collections amounted to N1.4tn, a 13.4% decline from N1.6tn recorded in 2019. This clearly reflects year long pressures from the pandemic as well as slow economic activities. 

Across sectors, collections deteriorated in some sectors in Q4 2020 with the biggest laggards being Transport & Haulage Services (down 56.7% y/y), Federal Ministries & Parastatals (down 45.9% y/y) and Banks & Financial Institutions (down 43.4% y/y) while other sectors improved in the review period with the biggest gains come from Petro-chemical & Petroleum Refineries (up 284.5% y/y), Conglomerates (up 129.2% y/y), Mining (up 121.9% y/y).  

CIT collections form a major part of non-oil revenue for the Federal Government and a decrease in collections further contributes to the government’s fiscal crisis in light of growing budget expenditure and poor revenue generation. The Finance Act  2020 made some adjustments to CIT. The newly Finance Act 2020 signed into law states that the minimum tax rate reviewed to 0.25% of gr0ss turnover serves an incentive to reduce the impact of Covid-19 on businesses.

Proshare Nigeria Pvt. Ltd.
Share

Businesstoday Magazine

Businesstoday Conference/Awards

Related Articles

Stanbic IBTC Asset Management Launches Anti-Scam Campaign To Protect Mutual Fund Holders

Stanbic IBTC Asset Management has implemented strong measures to safeguard its customers...

MTN Nigeria Raises N75.18Bn Via Commercial Paper Issuance

MTN Nigeria Communications Plc has announced the successful completion of its Series...

Stanbic IBTC Clinches Multiple Awards At The 2024 FMDQ Gold Awards

Stanbic IBTC Clinches Multiple Awards At The 2024 FMDQ Gold Awards  ...

Access Holdings Reports 82.8% Growth In Q3 PAT To ₦457.7 billion

*As Total Assets Hit To ₦41.1 Trillion   Access Holdings Plc, one...