By Emeka Mamah

ABUJA — The Federal Government is to amend the Taxes and Levies (Approved List for Collection of Taxes and Levies) Cap T2 LTN, 2004 in a bid to harmonise taxes and abolish multiple taxation of citizens across the country.

It has also directed the Inspector General of Police to dismantle all road blocks “mounted on the highways for revenue collection as they are illegal.”

The proposed amendment followed the Governor Ibrahim Dankwambo of Gombe’s report on complaints by the Manufacturers Association of Nigeria, MAN, that most states, especially Anambra, Lagos and Rivers over taxed their residents through duplication of taxes or levies on the same item or services.

The report stated that although only 20 forms of levies or taxes were approved by the Taxes and Levies Act, there were multiple taxation of citizens in most of the states across the country with Rivers, Lagos and Anambra topping the 17 states and Abuja, which were listed.

Apart from the 20 approved taxes, manufacturers paid 44 additional taxes or levies in Lagos State, bringing the number of such taxes/levies in the state to 64 just as 59 additional taxes/levies were paid in Anambra Sate, bringing the total of such taxes to 79.

MAN also said its members paid a total of 97 taxes or levies in Rivers State.

However, in reviewing the issue across the country, the National Economic Council, NEC, noted that taxes and levies charged by some states were not backed by appropriate legislations, therefore, declaring them illegal.

NEC also further stated that, “some taxes and levies were duplicated especially motor vehicle emblems and stickers.”

The government further stated that some taxes and levies that were usually duplicated at state and local government levels included the business premises fee and shops/kiosk rates.

According to NEC, “the mode of collection of taxes and levies in some of the states were not in accordance with the provision of Section 2 of the Taxes and Levies Act.”

Roads blocks

Giving such examples, the government said that it was illegal to use non revenue officials to collect taxes and issue receipts just as it was unlawful to mount roads blocks on the highways to collect levies or taxes or ask police officers to accompany unauthorised persons to collect taxes and levies especially on the highways.

The Federal Government further decried what it described as the “harassment of citizens, which constitutes a threat to public security as criminals sometimes hide under the guise of collecting revenue to commit crime against road users,” among others.