Rep. Tajudeen Abbas, the Speaker of the House of Representatives, has given the Committees on Finance and the Federal Inland Revenue Service (FIRS) three weeks to find and remove instances of double taxation on low-income Nigerian taxpayers.
On Thursday, October 10, 2024, Abbas rendered the decision following the plenary adoption of a resolution by MPs concerning tax duties and revenue collection in the face of increasing inflation.
Rep. Peter Aniekwe (LP-Anambra) and five other legislators made the motion.
Tax Requirements
Aniekwe, the motion’s sponsor, informed the MPs that many Nigerians are now experiencing hardship due to the country’s economic conditions, which are characterized by high unemployment, inflation, and the rising cost of living.
He emphasized that residents, particularly those with low incomes, face additional financial hardship due to the numerous taxes, levies, and fees imposed by several levels of government.
The congressman said that although providing for the basic requirements of the populace is the government’s main duty, this should be accomplished through measures that support social welfare, economic growth, and citizen prosperity.
“Concerned that the introduction of additional and sometimes unnecessary taxes, including consumption taxes, service taxes, and levies on essential goods and services, places an undue burden on the masses, further widening the inequality gap.”
“Mindful that while taxation is necessary for government revenue, a balance must be struck between revenue generation and the economic well-being of citizens, particularly at a time when many families and businesses are still recovering from the economic impact of global and local challenges.”
“Alternative measures can be taken to increase government revenue without overburdening the masses, such as expanding the tax base, improving tax administration, reducing government waste, and curbing corruption,” he said, as reported by the News Agency of Nigeria.”
The House of Representatives then asked the federal government to think about other ways to raise money rather than raising the nation’s taxation.
The House also recommended tightening the enforcement of current tax regulations and expanding the tax net to include more high-income people.
The House decided that the government should look at expanding the export of agricultural products and cash crops.
In order to expedite tax collection procedures, Speaker Rep. Tajudeen Abbas ordered the Committees on Finance and FIRS to undertake a comprehensive assessment of current tax laws and policies within three weeks.
To relieve citizens without endangering government income targets, one of their duties is to find and remove instances of double taxation and overlapping levies.
The National Orientation Agency (NOA) and other pertinent agencies were also urged by the House to inform the people of their rights and obligations regarding taxes and to report any instances of unfair taxation or exploitation to the Ombudsman.
The execution of these resolutions will be supervised by the House Committee on Legislative Compliance.
What To Note
As previously reported by THE NEWS CHRONICLES, Nigerians pay over 60 official and 200 unofficial taxes, and small businesses across the country face multiple taxes from different federal government agencies or similar taxes from several levels of government (federal, state, and municipal).
According to Mr. Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, there are additional unreported taxes that disproportionately impact small businesses, such as hawkers, petty traders, artisans, truck drivers, cart pushers, okada riders, and other transporters.
The Manufacturers Association of Nigeria (MAN), which views these levies as harmful to business growth, has requested that federal and state governments harmonize the taxes imposed on its members.
