Understanding the Fundamental Issues of Multiple Taxation in Nigeria: The Theoretical and Historical Approach

Abstract

Taxation has not been fully harnessed in Nigeria years due to oil boom which has been the major source of government revenue. With decline in the revenue from oil, the allocation from the federal account dwindles and has become inadequate for the state and local governments. This, accordingly, re-awakens clarion attention to non-oil revenue source (taxation) in other to boost the revenue account. Consequently, the governments have enacted various forms of tax laws in other to boost her revenue. As a result, there are multiplicities of taxes payable to the Federal, States; and Local Governments. This became apparent as the various tiers of government enacts tax laws that is not within the ambits of their taxing powers; while others in exercising their legitimate taxing power, act in excessive manner that leads to tax proliferation, leaving the taxpayer with burden of paying too many taxes. Some of the taxes are illegal, not in accordance with the law, others are legal, in accordance with the law, but have caused proliferation of taxes in the system. These factors have given rise to multiple taxation with the attendant consequence: scaring investors away and dwindling the rate of tax compliance. There is need to develop an efficient tax system in Nigeria that would be devoid of multiple taxation syndrome. It is against this backdrop that this paper is initiated to examine the possible way out of the problem. The paper adopted doctrinal research methodology. Accordingly, reliance was placed on the study of both primary and secondary sources of law like the constitution, federal and state enactments, text books, journals and newspapers. The paper founds the intricate causes of multiple taxation to include Nigerian Fiscal Federalism, Administration of Road Tax and Illegal Tax Collectors.

Keywords: Multiple taxation, road tax, tax collectors

DOI: 10.7176/JAAS/64-04

Publication date:May 31^st 2020