Taxation Increased In Q1 2021 Amid Surging Food Prices — Data

While Africa's largest economy was embattled with soaring food prices, citizens have still had to deal with increased taxation costs.

A report by the Nigerian Bureau of Statistics (NBS) on Saturday showed that Value Added Tax (VAT) had increased in the first quarter of the year by N41.7 billion to N496.39 billion as against N454.69 billion generated in the fourth quarter of 2020 and N324.58 billion generated in the first quarter of 2020.

According to the bureau, the increase represents a 9.17 percent increase quarter-on-quarter and a 52.93 percent increase year-on-year.

READ ALSO: Rice And Tomato Were Cheaper In February - NBS

The NBS had previously released a selected food price watch for March, where it revealed the soaring cost of feeding benchmarked by rice, eggs, tomatoes, and yam.

The bureau reported that at the end of the first quarter of the year, the average price of 1 dozen medium-sized Agric eggs increased year-on-year by 13.73% to N524.47 a piece of medium-sized Agric eggs increased year-on-year by 21.39% to N48.43.

READ ALSO: CBN Blames Herdsmen, Bandits For Growing Food Inflation

Also, the average price of 1kg of tomato was up year-on-year by 4.75% to N267.45, 1kg of rice (imported high quality sold loose) increased year-on-year by 24.06% N544.21, and the average price of 1kg of yam tuber had increased year-on-year by 18.77% to N244.82.

Of the total amount generated in Q1 of 2021, N224.85 billion was generated as non-import VAT locally, while N171.66 billion was generated as non-import VAT for foreign.

The bureau added that the balance of N99.88 billion was generated as Nigeria Customs Service-import VAT.

The NBS said that manufacturing generated the highest VAT – N49.41 billion –  closely followed by professional services that generated N42.50 billion.

“State ministries and parastatals generated N26.96 billion, while mining generated the least with N48.36 million", NBS said.

According to NBS, mining is closely followed by pioneering and textile with N77.01 million, and garment industry with N289.41 million.”