Different Types of Nigerian Tax and their Collection Bodies

Taxation is an age long concept which dates back to the pre-colonial era in Nigeria. Taxes were paid through different kinds of manual labor for the entire benefit of the community. Examples are digging of pit toilets, working on community roads etc. however, failure to render such service leads to seizure of property until one can pay. This is related to the inheritance of the best house built in the 1920’s at Isenyin by the Oyo State Government.

Adebayo (2004) defines taxation as the legal demand made by the Federal Government or State and its agencies for its citizens to pay money on income of goods and services. Dr. H. Dalton, a renowned tax person defines tax in his book titled “Principle of Public Finance” as a compulsory contribution imposed by a public authority, in respect of the exact amount of services rendered to the taxpayer in return.

Tax collection system in Nigeria has long been in existence since time immemorial and several means was used before and after colonization to collect tax from its citizens. A noticeable example was during the colonial era of late Lord Lugard’s government when board’s was constituted; which consisted of The residence Governor, Elders in each community, Native authority recognized by the tax authority and any village council appointed by the government.

In the course of focusing more on the consonant instead of the vowels. Though, they all made up the present Nigerian Tax system. Hence, in this century, the three tiers of government: Federal Government, State Government and Local Government have been saddled with the responsibility of collecting tax in Nigeria.

Holistically, this article will expose you to all the classification of tax under the three main tiers of Nigerian government and it goes thus;

TAXES COLLECTED BY STATE GOVERNMENT

1.    Personal Income Tax in respect of individuals resident in the State

(a)Pay-As-You-Earn (PAYE)

(b)Direct Taxation (Self-Assessment) Click here to read more: http://bit.ly/2D6kU8Y  

2.    Withholding Tax (Individuals Only)

3.    Capital Gains Tax (Individuals Only)

4.    Stamp Duties on instrument executed by individuals

5.    Pool Betting, Lotteries Gaming, and Casino Taxes

6.    Road Taxes

7.    Business premises registration fee in respect of urban and rural areas which includes registration fees and per annum for the renewals as fixed by each state

8.    Development Levy (individuals only) not more than 100 per annum on all taxable individuals

9.    Naming of street registration fees in the State Capital

10.    Right of Occupancy fees on lands owned by the State Government in urban areas of the State

11.    Market Taxes and Levies where State finance is involved

12.    Land use Charge, where applicable

13.    Entertainment Tax, where applicable

14.    Environmental (Ecological) fee or levy

15.    Mining, milling and quarrying fee, where applicable

16.    Hotel, Restaurant or Event Centre Consumption Tax, where applicable

17.    Animal Trade Tax, where applicable

18.    Produce Sales Tax, where applicable

19.    Slaughter or Abattoir fees, where applicable

20.    Infrastructure Maintenance Charge or levy, where applicable

21.    Fire Service Charge

22.    Property Tax, where applicable

23.    Economic Development Levy, where applicable

24.    Social Services Contribution Levy, where applicable

25.    Signage and Mobile Advertisement, jointly collected by the State and Local Government

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TAXES AND LEVIES TO BE COLLECTED BY LOCAL GOVERNMENT

1.    Shops and Kiosks rates

2.    Tenement rates

3.    On and Off Liquor License fees

4.    Slaughter slab fees

5.    Marriage, birth and death registration fees

6.    Naming of street registration fees, excluding any street in the State Capital

7.    The right of Occupancy fees on lands in the rural areas, excluding those collectible by the Federal and State Governments.

8.    Markets taxes and levies excluding any market where State finance is involved

9.    Motor park levies

10.    Domestic animal license fees

11.    Bicycle, truck canoe wheelbarrow, and cart fees, other than a mechanically propelled              truck

12.    Cattle tax payable by cattle farmers only

13.    Merriment and road closure

14.    Radio and television license fees (other than radio and television transmitter)

15.    Vehicle radio license

16.    Wrong parking charges

17.    Public convenience, sewage and refuse disposal fees.

18.    Customary burial grounds permit fees

19.    Religious places establishment permit fees.

20.    Signboard and Advertisement permit fees.

21.    Wharf Landing Charge, where applicable

TAXES COLLECTED BY FEDERAL GOVERNMENT

1.    Companies Income Tax

2.    Withholding Tax on companies and residents of the Federal Capital Territory and non-resident individuals

3.    Petroleum Profit Tax

4.    Value Added Tax

5.    Education Tax

6.    Capital Gains Tax on the residents of the Federal Capital Territory, bodies corporate and non-resident individuals

7.    Stamp Duties on bodies corporate and residents of the Federal Capital Territory

8.    Personal Income Tax in respect of: (a) Members of the Armed Forces of the Federation (b)Members of the Nigerian Police Force (c)Residents of the Federal Capital Territory (d)Staff of the Ministry of Foreign Affairs and non-resident individuals

9.    National Information Technology Development Levy

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Disclaimer: This article is provided for guidance and is subject to changes as and when the laws and policies are changed.

Should you require further information or assistance on the discussed matter, kindly send a mail to taxnaija24@gmail.com

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