LawTalk Series: 2018

This is a comprised write-up on the Laws, Bodies and Types of Taxes in Nigeria, starting with the laws backing it up;

1.0 LAWS BACKING UP TAXATION IN NIGERIA

1. Personal Income Tax Act(amended), 2011(PITA)

2. Companies Income Tax Act, 1990 (CITA)

3. Personal Income Tax Decree,1993 (PITD)

4. Taxes and Levies (approved list for collection), Decree (TLD)

2.0 TAX BODIES IN NIGERIA:

2.1 JOINT TAX BOARD(JTB)

The PITA gave birth to the Joint Tax Board (JTB), which is the apex or highest body in Nigeria, saddled with the sole responsibility of managing, administering, controlling and collecting tax.

2.2 FEDERAL INLAND REVENUE SERVICE (FIRS)

The CITA gave birth to the Federal Inland Revenue Service (FIRS), that is responsible for the collection of tax at the Federal level. In other words mostly Corporate bodies and Organisations duly registers with the Corporate Affairs Commission (CAC) pay tax to the FIRS.

2.3 STATE BOARD FOR INTERNAL REVENUE

The PITD empowers each state in Nigeria to set up it’s own state board for the sole purpose of collecting taxes at the state level. Thus, every State in Nigeria has it’s own board for tax collection. For instance Lagos state tax board is popularly known has Lagos Internal Revenue Service (LIRS).

2.4 LOCAL GOVERNMENT TAX UNIT

The PITD also empowers each local government in each state to collect different taxes and levies from their locality.

3.0 TYPES OF TAXES COLLECTED AT THE FEDERAL LEVEL BY FIRS

(i) Companies Income Tax.

(ii) Custom and Excise Duties.

(iii) Value Added Tax.

(iv) Education Tax

(v) Personal Income Tax in respect of:-

(1) Armed Forces, Police, etc.

(2) Non resident individuals and companies.

(3) Staff of Nigeria Foreign Service.

(4) Individuals resident in the Federal capital Territory.

4.0 TAXES COLLECTED AT THE STATE LEVEL

(i) Personal Income Tax. (1. Pay As You Earn-PAYE, 2. Self-Assessment)

(ii) Stamp Duties (on documents executed by individuals)

(ii) Road Taxes

(iii) Pools betting and lotteries.

(iv) Business premises registration

(v) Development Levy.

(vi) Naming of street registration in state capitals

(vii) Right of occupancy on land owned by state

(viii) Market taxes on state financed taxes.

5.0 TAXES COLLECTED AT LOCAL LEVEL

(i) Shops and Kiosks rates.

(ii) Tenement rates.

(iii) On and off liquor license fee.

(iv) Slaughter slab fees

(v) Marriage, Birth and death Registration Fees (Rural Areas).

(vi) Right of Occupancy on land in rural areas.

(vii) Market Taxes and Levies.

(viii) Motor Park Levies

(ix) Domestic Annual License Fees.

(x) Bicycle, Truck, Canoe, Wheelbarrow, and Cart Fees.

(xi) Cattle tax payable by cattle farmers only.

(xii) Merriment and Road Closure Levy.

(xiii) Radio and Television License Fees (other than radio and television

transmitter)

(xiv) Vehicle Radio License (Local Government Registration of the vehicle).

(xv) Wrong Parking Charges

(xvi) Public Convenience and Refuse Disposal, Customary burial ground permit

fees.

(xvii) Religious Place Establishments Permit Fees

(xviii) Signboard and Advertisement Permit Fees

In totality, we have a minimum of 40 types of taxes being collected and paid in Nigeria.

9 at the Federal level

11 at the State level and

20 at the Local level.

Also, note that these taxes are being subdivided into several groups e.g. the Personal Income Tax being paid and collected in Lagos State is subdivided into ( P.A.Y.E paid by employees and Self Assessment paid by Business persons).

Whether or not these taxes are outrageously collected or an average man is being multi taxed daily is another discussion for another. Hitherto, the bottom line is, as long as you have a means of livelihood whether as a petty trader, small or big scale business person, an employee, employer or all of the above you are obliged under the law to pay your tax to the government.

It is your civic duty, it is the law.

Always remember, that ‘your rights start where your duties stop’