Taxes Collected By The Three Tiers Of Government In Nigeria

Taxes Collected By The Three Tiers Of Government In Nigeria

Tax is a compulsory Levi which are imposed on individuals and business organizations by the government. Taxes of each tier of government in Nigeria have been clearly documented by the Joint Tax Board (JTB) so as to avoid multiple collections of taxes from the same taxpayer at least in theory.

Which Taxes Are Paid At Each Level Of Government?


The taxes paid to each level of government are different. To avoid paying multiple taxes to different levels of government, it is important to the type of taxes collected the each level. The different taxes are;

1. Federal Taxes


The Federal government is the largest and most powerful tier of government in Nigeria. The Federal government relies the most on income tax. There taxes includes:
  1. Companies Income Tax.
  2. Custom and Excise Duties.
  3. Value Added Tax.
  4. Education Tax
  5. Personal Income Tax in respect of:-
  • Armed Forces, Police, etc.
  • Non resident individuals and companies.
  • Staff of Nigeria Foreign Service.
  • Individuals resident in the Federal capital Territory.

2. State Taxes


The state government is the second tier of government in Nigeria. There are 36 states in Nigeria, the taxes they collect are:
  1. Personal Income Tax.
  2. Road Taxes
  3. Pools betting and lotteries.
  4. Business premises registration
  5. Development Levy.
  6. Naming of street registration in state capitals
  7. Right of occupancy on land owned by state
  8. Market taxes on state financed taxes.

3. Local Government Taxes


The local government is the last and smallest arm government in Nigeria. The local government is very close to the people. The following are the taxes they collect
  1. Shops and Kiosks rates.
  2. Tenement rates.
  3. On and off liquor license fee.
  4. Slaughter slab fees
  5. Marriage, Birth and death Registration Fees (Rural Areas).
  6. Right of Occupancy on land in rural areas.
  7. Market Taxes and Levies.
  8. Motor Park Levies
  9. Domestic Annual License Fees.
  10. Bicycle, Truck, Canoe, Wheelbarrow, and Cart Fees.
  11. Cattle tax payable by cattle farmers only.
  12. Merriment and Road Closure Levy.
  13. Radio and Television License Fees (other than radio and television transmitter)
  14. Vehicle Radio License (Local Government Registration of the vehicle).
  15. Wrong Parking Charges
  16. Public Convenience and Refuse Disposal, Customary burial ground permit fees.
  17. Religious Place Establishments Permit Fees
  18. Signboard and Advertisement Permit Fees.

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