Reps caution FG against ‘too many’ taxes on citizens

October 10, 2024
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The House of Representatives has cautioned the Federal Government against imposition of multiple taxes, especially through essential goods and services, on citizens.

The House, while urging the Federal Government to be sensitive to the plight of citizens by reviewing current tax policies, mandated its Committee on Finance to review existing tax laws and policies to streamline the tax collection process.

This, according to the parliament, is to  “eliminate redundant or overlapping taxes that contribute to the financial burden on citizens with a view to identifying areas of double taxation at all levels to provide relief to citizens without jeopardizing government revenue targets.”

It also urged the “federal government to consider alternative revenue generation strategies such as widening the tax net to capture more high-income earners, strengthening enforcement of existing tax laws, and plugging leakages in the system; exploring measures to increase export of cash crops and agricultural produce.”

The Green chamber equally directed the
National Orientation Agency (NOA) and other relevant agencies to embark on an enlightenment  campaign, so as to educate members of the public on their tax rights and responsibilities, and to report  cases of exploitation or unjust taxation to the ombudsman.

This followed the adoption of a motion by the Minority Leader, Kingsley Chinda, Peter Aniekwe and three others, on the need for the government to be sensitive to the plight of citizens and refrain from shifting economic burden through “unnecessary and multiple taxation, ” to the populace.

Aniekwe, in the lead debate, decried the current economic situation of the country,  which according to him is “characterized by rising inflation, unemployment, and the increasing cost of living, which has led to widespread hardship for the masses”.

The lawmaker argued that the imposition of multiple taxes, levies, and charges at various levels of government is increasing the financial burden on citizens, especially those in low-income brackets, pointing out that this category of Nigerians are already struggling to meet their  basic needs such as food, healthcare, housing, and education.

“The government’s primary responsibility is to alleviate the economic challenges faced by the masses, ensuring policies that promote economic development, social welfare and prosperity for all citizens.

“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.

“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.

“There are alternative measures that 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,” Aniekwe stated.

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