Tax Accounts for 94% of Nigeria’s $15.4bn Revenue

 Onyedimmakachukwu Business, Finance/Money, Strategies & Solutions

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VENTURES AFRICA – Returns from Nigeria’s Petroleum Profit Tax, Company Income Tax (CIT) and Value added tax (VAT) for the first half of the year, ended June 30, stood at $14.5 billion, representing 94.2 percent of the N2.5 trillion ($15.4 billion) revenue accrued to the country’s coffers.
The figures, courtesy of the report of Nigerian business newspaper Business Day, are reflective of thriving businesses in the Africa’s largest economy and an improving tax collection system, analysts say.
As expected, the Petroleum Profit Tax (PPT), which is
paid by companies or persons engaged in petroleum exploration and production operations in Nigeria, dominated the total H1 revenue by almost half with $7.3 billion.
The six-month revenue from the Companies Income Tax (CIT) totalled $4.63 billion. The tax applies to all companies incorporated in Nigeria with the exception of those engaged in petroleum operations and all non-resident (foreign) companies that earn or derive income from the country.
Returns from the Value Added Tax was the lowest of the bunch, coming in at $2.50 billion.