JTB: Multiple taxation on highways are negatively affecting cost of goods

The Joint Tax Board (JTB) says multiple taxation on Nigeria’s highways are negatively affecting the final cost of goods to consumers in the country.

Obomeghie Nana-Aisha, executive secretary, JTB, said this on Wednesday in Katsina, at a sensitisation and engagement programme for stakeholders in the state’s tax system on the single inter-state road tax sticker (SIRTS) and single haulage fee (SHF).

The event was organised by the JTB in collaboration with the Katsina state board of internal revenue service.

Nana-Aisha said the aim of the programme was to end illegal tax collection and extortion on the highways, as well as block revenue leakages in the country.

“The initiative is being implemented by the 36 states and the Federal Capital Territory (FCT) internal revenue service under the aegis of the JTB,” she said.

“It is a single sticker that if you buy it at N3,500 in one state, it can be used across all the 36 states including the FCT and nobody will harass you anywhere you go.

“In order to make sure that everybody benefits from that N3,500, there is a portion of it that belongs to internal revenue service, the vendor and the consultant.”

Nana-Aisha explained that the exercise was tailored to providing ample sensitisation and awareness among relevant stakeholders and ensure a thorough understanding of the SIRTS and SHF initiatives.

She added that it was designed for the success of grassroots/state-level programmes as participants are essential and important to the seamless implementation of the initiative.

“As we are all aware, the incidences of multiple taxation, harassment and extortion, have been commonplace on the nation’s highways for years, and this has had negative ripple effects,” Nana-Aisha said.

The executive secretary said it has a negative impact on the safety and well-being of road users and operators of the country’s transportation corridors, adding that the “final cost of goods to consumers and end-users is also affected”.

Nana-Aisha said while the legislation placed road taxes administration on state governments, encroachment by non-state government actors has made the administration disorganised and an avenue for indiscriminate tax collections.

She expressed optimism that the objectives of the initiatives, which include the reduction of incidences of double taxation via the sales of multiple emblems and stickers, would be met.

Other objectives, according to Nana-Aisha, are harmony, uniformity and coherence of road tax administration nationwide; restoration of the integrity of the road tax collection process; and ensuring that road tax collections are remitted appropriately to government coffers.

“We ensure the elimination of illegal roadblocks in the nation’s transportation corridors, economic empowerment via job creation for prospective vendors and agents,” she said. 

“This will enhance the IGR of states to drive socio-economic and infrastructural development within their respective jurisdictions.

“This exercise has been segmented into various sections, and we implore all participants to pay attention to the resource persons that will be leading the various discourse to fully understand the essence of the exercise.”