The Federal Government of Nigeria received N3.85 trillion in tax payments from foreign entities, including Google, Netflix, and Facebook, within the first nine months of 2024.
The total reflects an increase of 68.12 percent from the N2.29 trillion collected in the earlier period of 2023. This sum includes contributions from Company Income Tax and Value Added Tax. The data was released by the National Bureau of Statistics on Tuesday.
According to the report, there was a 26.21 percent increase in the amount, rising from N1.03 trillion in the first quarter to N1.30 trillion in the third quarter, while N1.52 trillion was reported for the second quarter.
A comprehensive examination of the reports has indicated a notable improvement in tax remittance, with corporations contributing N2.57 trillion in Corporate Income Tax (CIT) for the period spanning January to September 2024. This represents a significant increase of 43.65 percent compared to the N1.789 trillion collected during the corresponding period in the previous year.
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Furthermore, Value Added Tax (VAT) collections for the same timeframe reached N1.28 trillion, demonstrating an extraordinary rise of 157.03 percent, up from N498.34 billion in 2023. This information highlights a considerable expansion in tax revenue, driven by an improved collection initiative.
In 2020, the Federal Government began plans to collect tax from foreign digital service providers offering services and earning revenue in naira due to its high acceptance by the Nigerian populace.
Some of these service providers, which are video streaming sites, social media platforms, and companies that offer downloads of digital content, are expected to pay digital tax to the Federal Inland Revenue Service.
