NEWS
21 States Move to Stop Traders Paying Overlapping Levies
21 States Move to Stop Traders Paying Overlapping Levies
Twenty-one states have adopted harmonised tax laws.
Over 100 taxes and levies become nine categories.
Illegal roadside collections remain an enforcement problem.
Businesses should verify demands with revenue authorities.
October 29, () – Traders and transporters facing repeated payment demands could get relief under tax laws adopted by 21 states, although the Joint Revenue Board says illegal collections and harassment continue.
The board’s Executive Secretary, Olusegun Adesokan, announced the adoption figures at a briefing in Abuja on October 28.
He said the harmonisation framework consolidates more than 100 subnational taxes and levies into nine categories to address overlapping demands on businesses.
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For businesses transporting goods across state boundaries, repeated collections can increase delivery expenses before a consignment reaches its buyer.
Adesokan said the board was working with police and state revenue authorities to tackle illegal collectors along transport routes, linking their activities to higher costs for goods.
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Nigerian business professionals Source Getty Images
The States and Charges Covered
The board listed the adopting states as Abia, Adamawa, Akwa Ibom, Anambra, Bayelsa, Benue, Borno, Delta, Ekiti, Enugu, Gombe, Kaduna, Kebbi, Kogi, Kwara, Nasarawa, Niger, Ondo, Plateau, Yobe and Zamfara. Lagos was not included.
The nine categories presented at the briefing were income tax, stamp duties, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge and daily ticket.
Adesokan explained that user charges include payments for parking, signage and waste disposal. Daily tickets cover market levies, abattoir fees and transport-related charges.
Grouping these payments does not abolish every charge a trader currently pays. Nor does it mean each business owes nine separate payments. Liability depends on the business, the applicable state legislation and the approved charges.
Adesokan advised taxpayers to check questionable notices with the relevant revenue authority and avoid payments into private or consultants’ accounts. He clarified that the JRB coordinates tax administration but does not collect revenue directly.
A trader seeking clarification should therefore be able to establish what a charge covers, the approved amount and the authority collecting it. Notices and receipts provide a record for checking subsequent demands against payments already made.
Police Collaboration Targets Roadside Collectors
Adesokan acknowledged that passing legislation had not ended the problem.
“We know the problem exists, and we are working to fix it,” he said.
Roadside collection point Source ICIR
The board’s campaign targets tax roadblocks, cash collection and unauthorised revenue stickers and emblems. Adesokan said collaboration with police was ongoing and enforcement would begin soon.
Removing illegal payments could reduce transport expenses, but the announcement did not establish how much traders have saved or any resulting reduction in retail prices.
Those benefits will depend on collectors complying with the rules and businesses no longer facing the same demands under different names.
For traders moving goods through several jurisdictions, a clearer tax schedule will help identify legitimate charges.
Getting a consignment to market without repeated unauthorised payments will require that schedule to be enforced along the route.
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