The Federal Government of Nigeria has banned roadblocks for tax collection as part of new regulations to implement the country’s tax laws. This move aims to eliminate coercive practices, enhance transparency, and support the formalization of informal economic activities. The ban prohibits tax authorities from mounting roadblocks and collecting cash taxes, promoting technology-driven payment platforms instead.
It’s crucial that the federal government also addresses police roadblocks, as the practice of collecting money from transporters conveying goods should be considered tax collection.
Small businesses with an annual turnover of ₦12 million and below are exempt from tax, while other informal enterprises pay a 1% levy on turnover. This reform should broaden the tax base, simplify compliance, and protect small businesses.
Henry U Orji
