Business

December 1, 2022

FG rakes N2trn from indirect taxes, as banks’ taxes rise 41.7% to N135bn

By Peter Egwuatu

Despite the economic headwinds, the Federal Government, FG, received N2.01 trillion in indirect taxes in the third quarter of 2022, Q3’22, up 16.6 per cent from the N1.72 trillion  collected in the corresponding period of 2021, according to the data of the National Bureau of Statistics, NBS.

Indirect taxes paid to the government by a producers or retailers and later passed on to the consumers. They include value-added taxes (VAT), customs or import duties, excise duty, among others.

Indirect taxes are calculated based on current basic prices.

Meanwhile, 15 leading banks listed on the Nigerian Exchange Limited, NGX,    paid N135.3 billion as tax in Q3’22, showing 41.7 per cent rise against N  95.49 billion in the corresponding period of    2021, Q3’21.

The banks’ tax figure also represents 14.7 per cent of their Profit Before Tax, PBT, declared in Q3’22 as against 12.6 percent in Q3’21.

The PBT of the banks rose 21.6 percent to N  920.024 billion in Q3’22 against N  756.574 billion in Q3’21.

Findings by Vanguard from the latest figure released by the NGX show that Tier-1 banks which are First Bank, Access Holdings, Zenith Bank, Guaranty Trust Bank and UBA accounted for 84.6 per cent of the total tax paid by the sector in Q3’22 as against 89.8 per cent in Q3’21.

Details of individual bank’s tax figure show that Guaranty Trust Bank led with N  39.375billon followed by Zenith Bank with N  28.218billion and UBA with N  22.451billion came third. The other Tier-1 banks, First Bank and Access paid N14.203 billion and N10.289 billion respectively.