By Adedapo Adesanya
The federal government is looking to collapse the number of taxes paid by Nigerians and businesses to 10 from about 52.
This was disclosed by President Bola Tinubu’s Special Adviser on Revenue, Mr Zacch Adedeji, during the virtual TOPAZ 88 lecture series titled Revenue Challenges and Opportunities in Nigeria Today.
He revealed that this was among some of the plans being looked into by the new administration, which aims to prioritise tax collection from around 10 per cent to scale back on borrowing.
Speaking during the lecture, Mr Adedeji said the problem of multiple taxation has reduced trust and compliance among taxpayers in the country.
Commenting on the FG’s plans, Mr Adedeji said, “This is why, in the coming days, when the tax committee is constituted, we will ensure that we streamline our taxes from 52 to 10 because we have realised that it is very difficult to have compliance due to so many taxes.”
“What we want to do now is to ensure that regulators focus on regulations while agencies in charge of tax collections will collect. “
“For instance, the Nigerian Maritime Administration and Safety Agency (NIMASA) collect 3 per cent freight duty, but it is not their duty.
“Their duty is to secure the waterways. The collection of freights is the sole responsibility of the Nigerian Ports Authority. This is the reason we have leakages because we don’t know how much we have,” he said.
The revenue adviser also spoke of the FG’s plan to consolidate revenue collection in one government agency known as the Nigeria Revenue Service, explaining that this is to avoid duplication and ensure all taxes due to the government are collected by one agency.
This development is expected to bring ease to the organised private sector (OPS), which has lamented that the taxes being paid by businesses were stifling the business environment and eroding their profits.
Groups, including the Manufacturers Association of Nigeria (MAN) and Nigeria Employers Consultative Association (NECA), have lamented the issue of multiplicity of taxes, which had become a major challenge to organised businesses in the country.
Among different taxes and sundry charges, the pay includes Corporate Income Tax, Import duties, Export duties, Excise duties, Rent, Capital Gains Tax, Personal Income tax, Value Added Tax, Stamp Duties, and Property tax, Licenses.
Others include Motor Parking fees, Motor Vehicle fees, Withholding tax, Land tax, Market License fees, Road tax, Business Premises, dividend tax, NHIS levy, Advert fees, Regulation fees, NYSC levies, as well as regular user charges such as electricity, water, disposal fee, among others.