Multiple Taxation as a Bane of Business Development in Nigeria

Abstract

The study examines the appropriateness of multiple taxes in developing nations like Nigeria. Despite clear and unambiguous legislations that contain list of fees and taxes to be collected, all tiers of governments, ministries, departments and agencies are involved in collecting taxes that are not within this list. Various names are coined for these multiple taxes. The study used content analysis method to highlight challenges that are peculiar to Nigeria. Introducing taxes that are not backed by laws to investors because of the apparent profitability of their businesses and the attempt to increase revenue base is like shifting the goal post after the ball has been put into the net. This may lead to disinvestment. The new directive of making it illegal to use tax consultants by all tiers of government and mandating police to arrest those involved in collecting taxes outside the ones listed in The Taxes and Levies (Approved Rates for Collection) Act, 1998 will go a long way to put sanity to business environment. Healthy business environment will lead corporate entities to fulfill their corporate social responsibilities to the societies.

DOI: 10.5901/ajis.2014.v3n1p121