The Speaker of the House of Representatives, Rep. Tajudeen Abbas, has mandated a three-week deadline for the Committees on Finance and the Federal Inland Revenue Service (FIRS) to identify and eliminate double taxation affecting low-income earners in Nigeria. This directive came during a plenary session on October 10, 2024, following the adoption of a motion concerning revenue generation and tax obligations amid rising inflation.
The motion was introduced by Rep. Peter Aniekwe (LP-Anambra) and supported by five other lawmakers. Aniekwe highlighted the dire economic challenges facing Nigeria, including high inflation, unemployment, and increasing living costs, which have exacerbated the hardship experienced by citizens. He pointed out that the imposition of multiple taxes, levies, and charges at different levels of government further burdens low-income earners.
Emphasizing the government’s duty to address the basic needs of the population, Aniekwe stated, “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.” He underscored the importance of balancing revenue generation with the economic well-being of citizens, especially as many families and businesses recover from the impacts of various global and local challenges.
Aniekwe suggested that alternative measures could be taken to enhance government revenue without overwhelming citizens. He proposed expanding the tax base, improving tax administration, reducing government waste, and curbing corruption as viable solutions.
In response, the House urged the federal government to consider alternative revenue generation strategies instead of raising taxes. The lawmakers recommended widening the tax net to include more high-income earners and enhancing the enforcement of existing tax laws. They also discussed the potential to boost the export of cash crops and agricultural products.
Following these discussions, Speaker Rep. Tajudeen Abbas directed the Committees on Finance and FIRS to thoroughly review existing tax laws and policies within three weeks. Their responsibilities will include identifying and eliminating overlapping taxes to alleviate the financial burden on citizens without compromising government revenue goals.
Additionally, the House called upon the National Orientation Agency (NOA) and other relevant bodies to educate the public about their tax rights and responsibilities, encouraging them to report instances of exploitation or unjust taxation to the ombudsman. The House Committee on Legislative Compliance will oversee the implementation of these resolutions.
