Inspite of reported sluggishness in the economy, manufacturers income tax increased by additional N18 billion in the first three months of 2023, the National Bureau of Statistics (NBS) has said.
The report showed that manufacturers operating in the country paid N62 billion in income tax in the quarter under review, compared to N44 billion paid in the first quarter of 2022.
The increase shows a 29 per cent increase in the first quarter of 2023 than in the same period of 2022, according to the latest report from the NBS.
The sector contributed the most in income tax payments followed by the information and communication technology (ICT) and financial services sectors.
In addition to the rise in income tax payments, VAT collections from manufacturers also saw a notable boost to N129 billion, a 13% increase from the N112 billion reported in the corresponding period of 2022.
The NBS report showed a 60% increase in the total taxes paid by manufacturers to the Federal Government in 2022 as manufacturers paid N839.6 billion, up from N524 billion reported in the previous year.
Furthermore, the statistics reveal a substantial increase in manufacturing company income tax, soaring from N235 billion to N468.59 billion. VAT collections from the sector also experienced a significant upturn, climbing from N288.4 billion in 2021 to N477.43 billion.
The tax figures represent the income tax and Value Added Tax (VAT) payments made by manufacturers and do not encompass other duties and levies paid to other government agencies, such as the Nigeria Customs Service.
Francis Meshioye, the President of the Manufacturers Association of Nigeria, urged the Federal Government to reconsider the 2023 Fiscal Policy Measures scheduled to take effect on June 1, 2023.
Meshioye expressed concern over the exponential and burdensome increase in excise duties, particularly targeting the beer and tobacco industries. The excise on beer products surged by approximately 200%, while the tobacco industry faced a tax burden five times higher than other sectors.