Lagos, Nigeria – The Presidential Committee on Tax Reform has declared war on Nigeria’s chaotic tax system, revealing plans to eliminate over 60 redundant levies – including infamous “wheelbarrow taxes” – and overhaul revenue sharing between tiers of government.
Key Proposals
Scrap LG “nuisance taxes”: Wheelbarrow/bicycle levies to be outlawed
VAT Revolution: Federal collection, but 90% goes to states
Single LGA Tax: Councils to receive shares from FG/state revenues instead of multiple collections
Block New Illegal Levies: Stop NASS from creating inconsistent taxes
*”We’re using 19th-century laws in a 21st-century economy,”* said Taiwo Oyedele, Committee Chairman, at an NCC event. “Reform isn’t about revenue grabs – it’s about growth.”
Why It Matters
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Current System: 60+ agencies collect overlapping taxes, stifling businesses
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VAT Windfall: States could see revenues jump 300% under new sharing formula
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Legal Clash: Committee to confront NASS over contradictory tax laws
What’s Next?
Draft bill to be submitted to President Tinubu by Q4 2025
Constitutional amendments needed for VAT sharing
Expected pushback from revenue-dependent LGAs
