The House of Representatives has called on the Federal Government to review its current tax policies, particularly those on essential goods, to ease the burden on Nigerians.
The House resolution followed the adoption of a motion on urgent public importance moved during Thursday’s plenary session by the member representing Anambra East/Anambra West Federal Constituency, Anambra State, Mr Peter Aniekwe.
Titled “Need for government’s sensitivity to the plight of the masses and the call to refrain from shifting economic burden through unnecessary and multiple taxations,” the Labour Party lawmaker lamented the current economic situation of the country, “characterised by rising inflation, unemployment, and the increasing cost of living,” which he said “has led to widespread hardship for the masses.”
He noted 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.”
“The introduction of additional and sometimes unnecessary 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.
“While taxation is necessary for government revenue, 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 noted that the Federal Government can explore other revenue sources without “overburdening the masses, such as expanding the tax base, improving tax administration, reducing government waste, and curbing corruption.”
Following the adoption of the motion, Speaker Tajudeen Abbas, who presided over the plenary, mandated the House Committees on Finance and Federal Inland Revenue Service to, within three weeks, “conduct a thorough review of existing tax laws and policies to streamline tax collection processes.”
This, he noted, will help eliminate redundant or overlapping taxes that contribute to the financial burden on citizens “and identify areas of double taxation at all levels to provide relief to citizens without jeopardising government revenue targets.”
The House also 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, and plugging leakages in the system.”
It further directed the National Orientation Agency 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 the ombudsman.
That said, the House called for the immediate suspension of any new tax initiatives that disproportionately affect the low-income population until a comprehensive review of their impact is conducted.
Last Friday, the Federal Government announced the exemption of 63 items from Value-Added Tax (VAT), as part of its latest fiscal reforms.
