FG nets N8.51bn from 11 banks as IT levy in 2018
May 2, 2019803 views0 comments
Eleven Nigerian banks paid about N8.51bn Information Technology-related levies to the government in 2018, the audited financial reports of the banks showed.
This is an increase of N1.34bn over the N7.17bn IT levy the 11 banks paid to the government in the corresponding period in 2017.
The National Information and Technology Development Agency had established a Fund to which companies and enterprises with an annual turnover of N100m or more are mandated to contribute one per cent of their profits before tax to.
Companies liable to pay the levy as stated in the NITDA Act are GSM service providers and all telecommunications companies; cyber-companies and Internet providers; pension managers and pension-related companies; banks and other financial institutions; and insurance companies.
Some of the banks, whose annual reports were assessed, are Zenith Bank Plc, First City Monument Bank, Access Bank Plc, Guaranty Trust Bank Plc, United Bank for Africa Plc, Sterling Bank Plc and First Bank of Nigeria Limited.
Others are Jaiz Bank Plc, Union Bank Plc, Wema Bank Plc and Fidelity Bank Plc.
UBA paid the highest IT levy out of all the banks in 2018, reporting N2.31bn, a 49 per cent increase from N1.55bn remitted in 2017.
Zenith Bank ranked second, reporting N2.06bn IT levy remittance to the government, a 14 per cent increase compared with N1.80bn paid within the same period of 2017.
Having paid N1.90bn to the coffers of the government, GTB reported a two per cent increase in its IT levy remittance in 2018 as against N1.86bn paid in 2017.
IT tax expenses reported by First Bank rose by 12 per cent from N692m in 2017 to N774m in 2018.
As contained in its annual report, Access Bank’s IT levy remittance to the Nigerian government in 2018 was N752m, an increase of 12 per cent over N670m made in 2017.
Fidelity Bank’s IT levy remittance for 2018 improved by 24 per cent to N251m as against N203m in 2017.
Further analyses of the financial report indicated that FCMB’s IT tax levy paid to the Nigerian government reduced by eight per cent from N131.2m reported in 2017 to N120.5m in 2018.
For Jaiz Bank, the IT levy paid dropped by 38 per cent from N8.85m in 2017 to N5.45m in 2018.
With N98m reported in 2018, Sterling Bank’s IT levy paid to the government increased by 15 per cent year-on-year.
Wema Bank remitted N56.1m from its profits to the government in 2018, compared to N31.5m it paid in 2017, recording 78 per cent growth in IT levy remittance.
Details of Union Bank’s annual report indicated that the bank paid N185m as IT levy to the government in 2018, recording 42 per cent increase as against N130m in 2017.
According to NITDA Act 2007, companies eligible to pay the one per cent levy are assessed and issued a demand notice by the Federal Inland Revenue Service