Tax expert , Hon. Dauda Madaki Charges Nigerian on regular Tax Payment .

By Genesis Ogiri, Abuja

Dauda Madaki , Director general, global tax centre for Economic Development has urged Nigerians to contribute to the development of the country by paying their taxes.

He made the call yesterday at the  FCT Tax practioners association’s  Programme and End of the year celebration, in Abuja, in a prestigious event held at Nigerian National Merit Award House Maitama FCT-Abuja.

According to him  while speaking with NEWSWAY Africa, it was important for citizens to be responsible in their duties, as it would assist the government with funds to execute its activities and developmental projects. He said, the provision of health, education, infrastructure among others, are important to achieving a functional society, as such the cost of running these services should not be left to the government alone

He advised the government  to invest and manage resources well for the sake of posterity. " We seem to be consuming our present and our future. If we continue at the rate we're going,our children may not meet anything.

" We must ensure that future generations inherit something substantial.we need to ensure that we're doing the best for our children's children".

Wednesday NEWSWAY Africa gathered that  the issue of multiple Tax generated alots of  questions, 

despite the chest-beating by the Federal Inland Revenue Service (FIRS) that it had stopped multiple taxation in the country, critical stakeholders in the economy still experience the challenge. In a survey recently conducted by the News Agency of Nigeria (NAN), many traders and transporters in the Southeast reportedly expressed worry over incessant collection of taxes and levies, especially by touts and market unions in the zone. But this is a national malaise that is not restricted to markets.

 These taxes and levies by government agencies at the federal, states and local levels have become a problem for private sector operators, and they discourage investment.’

Essentially, multiple taxation occurs when the same income or products and services are subjected to more than one tax. Today, many of the states and local governments, under the pretext that the numerous levies they impose on corporate bodies and individuals do not yield the anticipated quantum of resources they need, have introduced the concept of Internally Generated Revenue (IGR) as another key tax component. While the levy of taxes are key sources of funds to enable government to meet its day-to-day expenditure, including the provision of social services, the tax system can also be used to direct the course of the economy. In fact, in most countries, it is a very potent weapon for economic regulation. That is not what obtains in Nigeria.  

Lagos State is a classic example of where residents go through the practical experience of the burden of multiple taxes as different forms of levies are replicated at the local government level. Thus, an individual who pays personal income tax through Pay As You Earn (PAYE), also has to pay other disguised taxes. There is property tax; tenement rate; land tax; parking levies. In fact, the licensing office, and the Ministry of Transport (MOT) charge different fees for almost the same services. But beyond the issue of multiplicity of taxes is the collection methods in practically all the 36 states and the Federal Capital Territory (FCT), Abuja. Very often, touts and all manner of street urchins are employed in the collection of these questionable taxes.  

One of the participants who spoke with NEWSWAY Africa on anonymity, said  there is an urgent need for a holistic review of the existing tax regime in the country. We need to bring more Nigerians under the tax net, while we must find a way to encourage job creation, especially at the micro level. For businesses, we are not advocating a tax-free regime on all goods or services. Far from that. Indeed, luxury goods and exquisite properties by the wealthy should attract heavy taxes. What we advocate is that government, at all levels, should make deliberate effort to minimise or indeed eliminate incidences of it.