The Speaker of the House of Representatives, Rep. Tajudeen Abbas, has given the Committees on Finance and the Federal Inland Revenue Service a three-week deadline to identify and eliminate double taxation affecting low-income Nigerian earners.
Abbas made this disclosure on Thursday, October following the adoption of a motion concerning revenue generation and tax obligations amid rising inflation during plenary, according to NAN.
The motion was moved by Rep. Peter Aniekwe (LP-Anambra) and five other lawmakers.
In moving the motion, Aniekwe informed lawmakers that Nigeria’s economic situation is currently burdened by inflation, unemployment, and a rising cost of living, leading to widespread hardship among citizens.
He noted that the imposition of multiple taxes, levies, and charges at various government levels adds further financial strain, particularly on low-income earners.
The lawmaker asserted that the government’s primary responsibility is to address the basic needs of the populace.
He emphasized that this should be achieved through policies that foster economic development, social welfare, and overall prosperity for citizens.
“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 NAN.
Following the discussion, the House of Representatives urged the federal government to explore alternative revenue generation strategies rather than resorting to tax increases.
The House recommended broadening the tax base to include more high-income earners and enhancing the enforcement of existing tax laws.
Additionally, they agreed that the government should focus on increasing the export of cash crops and agricultural products.
In his ruling, Speaker Rep. Tajudeen Abbas directed the Committees on Finance and the FIRS to conduct a comprehensive review of existing tax laws and policies within three weeks to streamline tax collection processes.
Their responsibilities will include identifying and eliminating overlapping taxes and areas of double taxation to alleviate the financial burden on citizens while ensuring government revenue targets are not compromised.
Reports indicate that Nigerians face over 60 official taxes and more than 200 unofficial taxes, with small businesses struggling under the weight of multiple taxation from various federal agencies and similar taxes imposed by different levels of government—federal, state, and local.
This complex tax environment poses significant challenges for businesses operating in the country.
