The House of Representatives has called on the authorities to guard against the imposition of unnecessary and multiple taxes, on the citizenry, particularly on essential goods and services.
Adopting a motion sponsored by Mr. Peter Udogalanya Aniekwe and three others, at plenary on Thursday, the lawmakers mandated its Committees on Finance and Federal Inland Revenue Service (FIRS) to within three weeks conduct a thorough review of existing tax laws and policies to streamline tax collection processes.
The review is also aimed at eliminating redundant or overlapping taxes that contribute to the financial burden on citizens to identify areas of double taxation at all levels to provide relief to citizens without jeopardizing government revenue targets.
The lawmakers further urged the Federal Government to consider alternative revenue generation strategies such as widening the tax net to capture more high-income earners, strengthening enforcement of existing tax laws, plugging leakages in the system; exploring measures to increase the export of cash crops and agricultural produces;
Calling on the National Orientation Agency (NOA) and other relevant agencies to embark on an awareness campaign to educate the public on their tax rights and responsibilities, and to report any cases of exploitation or unjust taxation to an ombudsman, they insist on the immediate suspension of any new tax initiatives that disproportionately affect the low-income population until a comprehensive review of their impact is conducted.
Aniekwe while moving the motion observed that the imposition of multiple taxes, levies, and charges at various levels of government only serves to exacerbate the financial strain on citizens, particularly those in low-income brackets, many of whom are already struggling to meet basic needs such as food, healthcare, housing, and education.
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He argued that the government’s primary responsibility is to alleviate the economic challenges faced by the masses, ensuring policies that promote economic development, social welfare, and prosperity for all citizens.
He noted that the introduction of additional 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.
Noting that while taxation is necessary for government revenue, he said a balance must be struck between revenue generation and the economic well-being of citizens, particularly at a time when many families and businesses are still recovering from the economic impact of global and local challenges.
He contended that alternative measures can be used to increase government revenue without overburdening the masses, such as expanding the tax base, improving tax administration, reducing government waste, and curbing corruption.
