A sum of N2.33tn from Pay As You Earn tax was remitted to the coffers of the 36 states in Nigeria and the Federal Capital Territory in three years, according to data collated from the National Bureau of Statistics.
According to the NBS, PAYE is a form of personal income tax that refers to tax deducted directly from the wages and salaries of employees operating in the formal sector.
“All employers in Nigeria are responsible for deducting Pay As You Earn taxes from their employees’ earnings,” it said.
The highest PAYE collected in the years under review was N851.73bn in 2020, up from N809.32bn in 2019 and N669.22bn in 2018.
Lagos (N788.29bn) earned the highest from PAYE in the period under review, followed by Rivers (N255.34bn) and the Federal Capital Territory (N210.08bn).
Jigawa (N11.74bn), Taraba (N10.66bn), and Gombe (N9.23bn) made the least from PAYE in the period under review.
According to the Federal Inland Revenue Service, PIT is guided by the amended Personal Income Tax Act Cap P8 LFN 2004, and it is imposed on income of individuals, corporate sole or body of individuals, communities, families and trustees or executors of any settlement.
