Dangote Cement‘s income tax expense rose 4% to N92.79bn in H1 2022
Dangote Cement Plc has announced about four per cent increase in income tax expense to N92.79billion in half year (H1) ended June 30, 2022 from N89.62billion reported in half year ended June 30, 2021.
With the N92.79billion income tax expense in H1 2022, the cement manufacturing company maintained its position as a leading taxpayer in Nigeria and one of the leading contributors to the country’s economy.
The breakdown of the income tax expense showed a N96.94billion Current tax expense in H1 2022 from N80.91billion reported in H1 2021, while Deferred tax credit was N4.15billion in H1 2022 from deferred tax expenses of N8.7billion in H1 2021.
Dangote Cement is 86-per cent owned by Dangote and ranks as Africa’s largest cement producer, with a 51.55 million-tonne-per-annum production capacity spread across 10 countries.
In addition, the leading cement manufacturer presently pays over N240 million in VAT to the national treasury on a daily basis, making it one of the country’s largest private-sector taxpayers.
The N92.79billion income tax expense represents more than 35 per cent of its profit before tax of N264.9 billion in the H1 2022, and about 54 per cent of its total tax charge in 2021.
This means that the cement company may pay more in corporate taxes this year than it did last year, even if its earnings fall.
Dangote Cement’s profit after tax fell 10 percent in the first half of 2022, from N191.63 billion in the H1 2021 to N172.1 billion in H1 2022.
The group’s earnings were hit by an increase in selling and distribution expenses as well as a jump in direct production costs driven by energy costs, in addition to an unrealized foreign currency loss of N40.66 billion.
In 2021, when it paid a total of N173.9 billion in corporate taxes to the government, it was granted a $54-million tax credit for the construction of the Apapa-Oworonshoki-Ojota Road in Lagos and the Lokoja-Obajana-Kabba Road, connecting Kogi and Kwara states in the country’s north central region.
The tax credit is consistent with the government’s aim to boost infrastructure development in the country.
