The House of Representatives has advised the federal government to refrain from unjust taxation that will further impoverish the masses struggling with the cost of living crisis
The House of Representatives on Thursday called for the immediate suspension of new tax initiatives by the federal government that disproportionately affect the low-income population until a comprehensive review of their impact is conducted.
Consequently, the lawmakers directed the National Orientation Agency (NOA) 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.
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 by exploring measures to increase export of cash crops and agricultural products.
These resolutions were adopted as part of a motion considered by the lawmakers sponsored by the minority leader, Rep. Kingsley Chinda (PDP, Rivers) and co-sponsored by five (5) others.
Although, the motion was presented by Rep. Peter Aniekwe (LP, Anambra) who argued that the current economic situation of the country, characterised by rising inflation, unemployment, and the increasing cost of living, has led to widespread hardship for the masses.
He also lamented 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.
Consequently, he said that the government’s primary responsibility is to alleviate the economic challenges faced by the masses, ensuring policies that promote economic development, social welfare, and prosperity for all citizens.
According to him, “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.
“Although 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.
“The alternative measures that can be taken to increase government revenue without overburdening the masses, such as expanding the tax base, improving tax administration, reducing government waste, and curbing corruption.”
The motion was passed when Speaker Tajudeen Abbas who presided over the plenary session put the matter to voice vote.
The house accordingly mandate its committees on finance to conduct a thorough review of existing tax laws and policies to streamline tax collection processes and eliminate redundant or overlapping taxes that contribute to the financial burden on citizens.
