Fall in Corporate Tax brings down Non-oil Receipts by 30%

CBN Governor Sanusi Lamido Sanusi
 

From Businessday.
Non-oil receipts of N589.98 billion fell below the proportionate budget estimate by 22.8 percent in the fourth quarter of 2012 and the receipts in the preceding quarter by 30.3 percent, the Central Bank of Nigeria (CBN) has said.

The decline in non-oil revenue relative to the preceding quarter, reflected, largely, in the drop in corporate taxes, Federal Government independent revenue and Customs and Excise duties during the review period.

As a percentage of projected fourth quarter 2012 nominal GDP, oil and non-oil revenue were 17.2 and 5.6 per cent, respectively.

On the other hand, gross oil receipts of N1,823.6 billion, which constituted 75.6 percent of the total, exceeded the proportionate 2012 budget estimate by 9.9 percent and the receipts in the corresponding period of 2011 by 151.2 percent, but declined by 5.8 percent below the receipts in the preceding quarter.

According to the CBN’s Economic Report for the fourth quarter of 2012, the rise in oil receipts relative to the proportionate budget estimate was attributed, largely, to the improvement in the receipts from petroleum profit tax, royalties and domestic crude oil and gas sales during the period.

Meanwhile, the gross federally-collected revenue of the sum of N1.313 billion (after accounting for all deductions and transfers) during the review quarter was transferred to the federation account for distribution among the three tiers of government and the 13.0 percent derivation fund.

The Federal Government received N620.75 billion, while the states and local governments received N314.85 billion and N242.74 billion, respectively. The balance of N135.33 billion went to the 13.0 percent derivation fund for distribution by the oil-producing states.

Also, the Federal Government received N26.47 billion from the VAT pool account, while the state and local governments received N88.24 billion and N61.77 billion, respectively.

In addition, the sum of N72.15 billion was drawn-down from the Excess Crude Account (ECA) to bridge the short-fall in revenue for the period and was shared as follows: federal (N33.07 billion), state (N16.77 billion), local governments (N12.93 billion) and oil producing states (N9.38 billion).