Google, Netflix, Facebook and other foreign companies operating in Nigeria paid N2.55tn in taxes to the Federal Government in the first six months of 2024.
In a report on Sunday by Punch, the amount represents an increase of 158.76 per cent from N985.27bn collected in the preceding period of 2023.
The figure includes Company Income Tax and Value Added Tax, collated from data obtained from the National Bureau of Statistics.
According to the Federal Inland Revenue Service, CIT is a 30 per cent tax imposed on companies’ profit, and VAT is a 7.5 per cent consumption tax paid when goods are purchased, and services are rendered and borne by the final consumer.
In January 2022, the Federal Government disclosed that it would charge offshore companies providing digital services to local customers in Nigeria a six per cent tax on turnover as provided in the 2021 Finance Act.
A breakdown of the reports showed that the companies paid N1.72tn as CIT while N831.47bn was collected as VAT between January and June 2024.
On a quarterly basis, Nigeria’s earnings from CIT increased by 87.2 per cent from N598.13bn in Q1 to N1.12tn in Q2.
Checks by our correspondent also revealed that the amount was the highest sum paid by the companies, contributing more than 45.3 per cent to the N2.4tn collected in the second quarter.
A breakdown of VAT showed that Nigeria earned N435.73bn in Q1 and N395.74 in Q2, marking a reduction of N39.99bn.
On Tuesday, the Minister for Finance and Coordinating Minister of the Economy, Wale Edun, revealed that the Federal Government’s revenue for the first quarter of 2024 increased to N9.1tn, more than doubling the amount recorded in 2023 without increasing taxes.
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