The Burden of Taxes and Levies in Nigeria: When Fiscal Pressure Becomes Unsustainable

Today, there is a great deal of concern about the burden of multiple taxes and levies imposed by local governments on businesses and residents in the South-East region of Nigeria. Testimonies from various business stakeholders indicate increasing pressure on their businesses already strained by the national economic challenges.

Complainants point to the heavy-handed method used by government agents to forcibly obtain these taxes and levies. Many of them hire thugs who harass and intimidate people to force them to pay often exorbitant rates.

A prominent example of this is that of Chinonso Nwizu, a manager of a transport and logistics company, who was humiliated and detained for two days in Aba by the Abia State Revenue Brigade. Nwizu claims that he was arrested without committing any offence, which raises questions about the methods used by these fundraising agencies.

For its part, the Enugu State government disputes the idea that its tax rate is excessive. It is therefore necessary to conduct a thorough reflection on the balance to be struck between the financial needs of local governments and the preservation of the regional economic fabric.

In this context, traders on Ngwa Street in Aba give a nuanced view of the situation. While some believe that government progress is visible and that fundraising is justified, others express concerns about the tax burden on their businesses.

In a similar vein, residents of Anambra express their discontent with the multiple taxes imposed by the public administration. The climate of uncertainty created by these excessive levies harms the confidence of economic actors and compromises the dynamism of the private sector.

In conclusion, it is imperative that local authorities review their tax policy and ensure a transparent and equitable system for all taxpayers. It is essential to find the right balance between the financial imperatives of the State and respect for the rights of citizens to fair and reasonable taxation.

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