New tax laws outlaw revenue roadblocks, Adesokan says

By Emma Ujah, Abuja Bureau Chief There is no room for agents of state and local governments to mount roadblocks in the name of revenue collection under the new tax laws, the Executive Secretary of the Joint Revenue Board (JRB), Mr Olusegun Adesokan, has said. Adesokan stated this in Abuja last week while reviewing the implementation of the new tax laws, saying the harmonised legislation was designed to curb multiple taxation and illegal revenue collection across the country.

He said the board was working with the police to tackle illegal revenue collectors who mount roadblocks, harass motorists and impose unauthorised charges on transporters along highways. According to him, illegal revenue collection has become a major contributor to the high cost of transporting goods across the country and would no longer be tolerated.

The JRB executive secretary acknowledged that multiple taxation and harassment of traders and transporters remained widespread despite the ongoing reforms. “We know the problem exists, and we are working to fix it. We may not be able to clear everything completely today, but as time goes on, we are working on it,” he said. Adesokan explained that illegal roadside collections increase transportation costs, with the resulting burden passed on to consumers through higher food prices and the cost of other goods.

He said the reforms were intended to address overlapping taxes and levies that increase the cost of doing business, adding that 21 of the 36 states had passed the relevant laws to facilitate their implementation. The states, according to him, are Kebbi, Kaduna, Zamfara, Ekiti, Enugu, Abia, Anambra, Gombe, Adamawa, Yobe, Borno, Niger, Plateau, Benue, Kogi, Kwara, Nasarawa, Akwa Ibom, Bayelsa, Delta and Ondo.

He said the states yet to pass the legislation were at different stages of implementing the reforms, partly because of legislative processes and consultations with stakeholders. Adesokan said the board, which comprises tax authorities at the federal and state levels, was working to ensure uniform implementation of the new tax laws and eliminate arbitrariness in tax administration across the country.

He stressed the need to support micro, small and medium enterprises (MSMEs), describing them as the foundation of a fast-growing economy and an important part of the country’s business environment. He urged state tax authorities to respect the tax exemption provisions for small businesses and avoid actions that could undermine the reforms. Adesokan cited small traders and artisans among categories of taxpayers covered by applicable exemptions, saying tax authorities should focus on those with the capacity to pay rather than burdening low-income earners.

He added that the board had issued guidelines to promote uniform personal income tax administration and harmonised tax practices across the states. Under the new tax laws, micro and small businesses with an annual turnover of ₦100 million and below are exempt from paying tax.