Collection of illegal taxes on highways – The Sun

The resort of some state and local government officials to the mounting of roadblocks on the nation’s highways for the purpose of collecting sundry illegal taxes and levies from   travellers has drawn the ire of the National Economic Council (NEC). At the end of its recent meeting in Abuja, the Council adopted the report of the Ministerial Implementation Committee on Harmonisation of Taxes, which roundly indicted some state governments for setting up Task Forces that have been collecting taxes and levies that are not provided for in the nation’s laws. The committee was set up following complaints by the Manufacturers Association of Nigeria (MAN) that its members were being subjected to multiple taxation in different parts of the country.
A survey commissioned by MAN last year showed that there were no fewer than 97 different taxes and levies in some states, including the Federal Capital Territory (FCT), Abuja. The NEC has now directed the Acting Inspector General of Police (IGP), Mr. Suleiman Abba to dismantle all roadblocks mounted on highways across the country for the purpose of revenue collection.
We welcome the intervention of the National Economic Council in this matter. The harassment of travellers on the nation’s highways over spurious taxes and levies is a despicable practice that has been going on for many years. It is comforting that a vital Federal Government advisory body like NEC has waded into the matter. Its directive to Police authorities to dismantle all roadblocks on the highways is long overdue. The forcible collection of taxes on expressways is just one step short of armed robbery, as helpless  travellers are held hostage in unfamiliar territory and made to hand over the money on them to roughnecks purporting to be government officials under the guise of tax collection.
It is strange that many state governments are indifferent to the activities of touts who make their living through the harassment and exploitation of commuters. This official indifference to the criminal exploitation of innocent Nigerians is a serious threat to the lives of ordinary Nigerians. It is an affront to orderliness and peaceable living in the country. Touts, in whatever form, are an intolerable nuisance and should be treated as such. The state and local governments must find ways of collecting their legal taxes without accosting ordinary citizens on the highways. Let these levels of government design safer and more civil ways to increase their Internally Generated Revenue (IGR).
It should not be through unwholesome and extortionist means. This idea of accosting travellers on the highways is against the spirit   of effective and efficient tax administration in the country. It is, in fact, a contravention of section 2(1) of the Taxes and Levies Act.
Besides, in these times of insecurity in the country, illegal roadblocks on the nation’s highways could heighten security challenges, as armed robbers often cash in on them to attack travellers. This risk is further heightened by the fact that travellers may find it difficult to distinguish between highway robbers and local or state government officials.
We welcome some of the recommendations in the NEC report, and urge states and local council authorities to comply with them without delay. For instance, we agree that beyond illegal taxes and levies, the 1998 Taxes and Levies Act is overdue for a review. This has become expedient because, as the NEC report affirmed, there is a duplication of some taxes and levies at both state and local government levels. In addition, all levels of government in the country should discontinue the use of non-revenue officials for the collection of taxes and levies. One good option is for states to automate their tax operations for effectiveness and accountability. This will also help to reduce leakages in the tax administration system in the country.
We are surprised that in spite of the joint decision of the federal and state governments to stop the use of tax contractors for the collection of taxes and other miscellaneous levies, last year, some states are still engaged in the practice.
The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, had recently said that the responsibility for tax collection now rests with the states’ Boards of Internal Revenue Services, while the Joint Tax Board (JTB) will ensure compliance with government guidelines on all collectible taxes. All cases of infractions, she said, would be referred to the National Economic Council (NEC).
Multiple taxation stifles business growth and causes constant friction between individuals and state/council officials. It is instructive that Edo State has already complied with the NEC directive by setting up a Task Force to enforce the order.
According to the State governor, Comrade Adams Oshiomhole, any council official caught harassing travellers for levies will be dealt with. Let all the other states take similar steps too. States and council authorities should keep their officials off highways. Their presence on the roads is not only a flagrant breach of the laws of the land, their harassment of travellers clearly puts their lives in harm’s way.
We believe that with the presence of the police, the Nigeria Customs Service, Immigration, Federal Road Safety Commission (FRSC) and Vehicle Inspection Officials (VIOs) on the highways, we do not need state or council officials or touts to further block the free flow of traffic. Let there be strict enforcement of the law that restricts tax collection in the country to the Boards of Internal Revenue, to stop the illegal collection of taxes, levies and sundry charges in the country. Let local and state governments stop tax collection touts from haranguing travellers on our highways.