Revenue generated from Value Added Tax (VAT) and Company Income Tax (CIT) witnessed substantial Year-on-Year (YoY) growth of 17 percent, amounting to N3.48 trillion in the first half of 2023 (H1’23), compared to N2.97 trillion recorded in the corresponding period of 2022 (H1’22).

According to data released by the National Bureau of Statistics (NBS), VAT revenue alone reached N1.49 trillion in H1’23, reflecting a remarkable YoY increase of 25 percent from N1.19 trillion in H1’22. Similarly, CIT revenue showed a YoY rise of 11.7 percent, reaching N1.99 trillion in H1’23, compared to N1.78 trillion in H1’22.

The NBS report further detailed that in Q2’23, VAT amounted to N781.35 billion, registering a 10.11 percent growth rate on a Quarter-on-Quarter (QoQ) basis from N709.59 billion in Q1’23. Of this, local payments accounted for N512.03 billion, foreign VAT payments contributed N142.63 billion, and import VAT added N126.69 billion in Q2’23.

In terms of sectoral contributions, manufacturing led with 29.64 percent, followed by information and communication at 21.19 percent, and financial and insurance activities at 11.18 percent in Q2’23.

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Regarding CIT in Q2’23, NBS reported a total of N1.53 trillion, showcasing an impressive 226.40 percent growth rate on a QoQ basis from N469.01 billion in Q1’23.

Local payments received amounted to N1.02 trillion, while Foreign CIT Payment contributed N505.91 billion in Q2’23.

The top three sectors in terms of contributions in Q2’23 were manufacturing (25.63 percent), financial and insurance activities (24.47 percent), and information and communication (20.3 percent).