A report released by Stakeholder Democracy Network (SDN) and its partners has exposed the crippling effects of multiple taxation on businesses in Rivers State.
The study unveiled at the weekend, revealed that a staggering 75 official charges applicable to businesses, with 17 of these appearing to be multiple taxes.
According to Alexander Sewell, Research and Policy Manager for SDN, the research, carried out in March 2024, paints a grim picture of financial strain and operational difficulties faced by businesses.
A whopping 65% of businesses believe they pay multiple taxes, while 57% have been personally harmed by tax collectors.
The situation is further exacerbated by aggressive tactics employed by tax collectors, resulting in one-fifth of reported physical attacks, one-fourth of claimed property seizures, and one-sixth of business shutdowns.
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Young people and women are disproportionately impacted, with two-thirds of businesses in the state reporting multiple taxes, it said.
The study shows that businesses run by individuals below 35 years are more likely to be forced into paying multiple taxes (64%) compared to those run by older individuals (55.6%). Similarly, female-owned businesses are slightly more likely to pay multiple taxes (67%) than male-owned ones (64%).
Sewell noted that more young people spend over 31% of their income on taxes compared to those over 36 years old (16% versus 7% of the sample population). This means that young entrepreneurs are allocating a significant portion of their hard-earned income towards taxes, leaving limited resources for growth and development.
Despite successive governments pledging to address the issue, the study reveals a lack of tangible progress.
It noted that committees established to assess the situation and make recommendations have failed to yield meaningful reforms.
It also recommended the criminalization of multiple taxation, saying that a law should be enacted to prohibit tax collection outside the harmonized system, with clear prosecuting powers for courts to act.
