According to Tolby, R.A., The Theory and Practice of
Income Tax, (Sweet & Maxwell: London, 1978) p. xix., ‘the tax
system of can be described as a universal contrivance whereby the
State imposes upon its citizens a compulsory financial levy or
contribution for the benefit of society as a
whole’.
According to the Black’s Law Dictionary,
8th Edition, page 1498, Tax is defined as
‘a mandatory charge imposed by the government on
persons, entities, transactions, or property to yield public
revenue. (It) embraces all governmental impositions on the person,
property, privileges, occupations, and enjoyment of the people, and
includes duties, imposts and excises’. Realizing the
facts that the issue of taxes being oppressive on the citizens from
the government’s imposition of same has been sorts of arguments
from the members of the public, this paper aims at considering the
powers of the legislators to make laws imposing tax (es) on
citizens of Nigeria and the socioeconomic rights of Nigerian
citizens by dissecting through the Constitutional framework.
First and foremost, prompt payment of taxes is a constitutional
duty of every Nigerian as mandated by section 24 (f) of
the Constitution of the Federal Republic of Nigeria, 1999 (as
amended)- herein after referred to as the Constitution which
provides thus ‘ It shall be the duty of every citizen to declare
his income honestly to appropriate and lawful agencies and pay his
tax promptly’. Though, it is important to also state
that tax is just one of the means through which a government
generates revenues, such imposition is expected to bring comfort
and not discomfort to its citizens. Furthermore, the word
‘low’ has been used in relation to the
characteristics of a tax. Meaning that a tax should be low in form
of compliance by those to pay it and this is the concentration and
concern of this paper.
Constitutional Powers of the National Assembly to impose
tax
By virtue of section 4 of the
Constitution, the legislative powers of the National
Assembly to make laws in respect of tax is provided for thus
4.—(1) The legislative powers of the Federal Republic
of Nigeria shall be vested in a National Assembly for the
Federation which shall consist of a Senate and a House of
Representatives. (2) The National Assembly shall have power to make
laws for the peace, order and good government of the Federation or
any part thereof with respect to any matter included in the
Exclusive Legislative List set out in Part I of the Second Schedule
to this Constitution. (3) The power of the National Assembly to
make laws for the peace, order and good government of the
Federation with respect to any matter included in the Exclusive
Legislative List shall, save as otherwise provided in this
Constitution, be to the exclusion of the Houses of Assembly of
States. (4) In addition and without prejudice to the powers
conferred by subsection (2) of this Section, the National Assembly
shall have power to make laws with respect to the following
matters, that is to say— (a) any matter in the Concurrent
Legislative List set out in the first Column of Part II of the
Second Schedule to this Constitution to the extent prescribed in
the Second Column opposite thereto ; and (b) any other matter with
respect to which it is empowered to make laws in accordance with
the provisions of this Constitution. (5) If any law enacted by the
House of Assembly of a State is inconsistent with any law validly
made by the National Assembly, the law made by the National
Assembly shall prevail, and that other law shall to the extent of
the inconsistency be void.’. Furthermore, under this
Exclusive Legislative List, item 59 is of
interest to this paper, which provides thus ‘Taxation
of incomes, profits and capital gains, except as otherwise
prescribed by this Constitution’. Also, the
Concurrent Legislative List comprising of legislative powers shared
by both the Federal Government and the State Governments provides
thus ‘7. In the exercise of its powers to impose any
tax or duty on— (a) capital gains, incomes or profits of persons
other than companies; and (b) documents or transactions by way of
stamp duties, the National Assembly may, subject to such conditions
as it may prescribe, provide that the collection of any such tax or
duty or the administration of the law imposing it shall be carried
out by the Government of a State or other authority of a State.’.
Also, by item 8 of the Concurrent Legislative List, it is provided
that 8. Where an Act of the National Assembly provides for the
collection of tax or duty on capital gains, incomes or profit or
the administration of any law by an authority of a State in
accordance with paragraph 7 hereof, it shall regulate the liability
of persons to such tax or duty in such manner as to ensure that
such tax or duty is not levied on the same person by more than one
State.’.
Nevertheless, it is worthy of note that the legislative arm of
each: Federal; State; and Local/Area Council (government)
legislates respectively for taxation but my concern here is using
the Federal Government’s taxation as a case study or yardstick.
Constitutional Socioeconomic Rights of Nigerian
citizens
Socioeconomic rights are those rights that give people access to
certain basic needs (resources, opportunities and services)
necessary for human beings to lead a dignified life’.
See: Socio-Economic Rights in South Africa, Second
Edition, Edited by Sibonile Khoza. Under this
heading, the following forms part of socioeconomic rights of
Nigerian citizens under the Constitution and some international
laws ratified by Nigeria, which binds Nigeria: i. right
to health; ii. The right to education; iii. The right to work; iv.
The right to a safe environment; v. rights of residency and
movement of persons and goods; vi. The right to control natural
resources; vii. The right to an accountable government; viii. Right
to political participation; ix. The right to cultural life; x. the
right to security and welfare; among other rights. See: Nigerian
Law on Socioeconomic Rights by Femi Falana (Senior Advocate of
Nigeria), Legal Text Publishing Company, Lagos, 2017.
These socioeconomic rights have been guaranteed by laws of
Nigeria and other international laws. Among these international
laws are: the African Charter on Human and People’s
Rights; the United Nation’s Universal Declaration of People’s
Rights, the International Covenant on Economic, Social and Cultural
Rights ; among others.
The purport of the above listed socioeconomic rights are to the
effect that in as much as a government charges its citizens taxes
to pay, the government also owes its citizens the duty to fulfill
their socioeconomic rights.
Therefore, in my humble view, where the government fails in its
socioeconomic responsibilities to its citizens, the same government
has no justification to oppress its citizens by imposing tax that
is very oppressive or in a way, being very difficult for its
citizens to pay or taxes that do not put the socioeconomic
situation of the citizens into consideration. Oppressive taxation
is burdensome, difficult or hard for the citizens to bear. For
instance, security and welfare have been some of those twin or
identical challenges that Nigeria and her citizens have always been
facing. Government has not been able to combat these two
challenges; same goes with education; safe environment; etc.
Therefore, citizens now have to provide security for themselves as
well as provide welfare for themselves. So, the situation in
relation to government in my humble view is that of ‘to whom
much is given, much is expected’. And at best, for me, with
due respect, government has not done enough in relation to what it
uses the public’s funds for. Corruption is another set-back in
administering the taxes of the citizens. Some of the government’s
officiating officials have been accused of corruption of public
funds (taxes).
Therefore, and for the purpose of emphasis, Nigerian government
as of the moment is not justified to impose taxes that would make
life unbearable or difficult to its people.
Furthermore, in my humble view, citizens have to utilize their
socioeconomic right of holding government accountable for its
duties. Government must be held to account for even one Naira (N1)
generated from the citizens’ taxes.
Finally, it is my humble view that in as much as the government
through its legislative arm has the discretion to impose taxes on
its citizens, such government is expected to also consider the
socioeconomic circumstances and or situation of its citizens by not
being oppressive against its citizens in the imposition of taxes.
Also, the citizens have the legal right to hold government
accountable for its duties in safeguarding the socioeconomic rights
of its citizens in the public’s interest. It is in this way that I
believe that both the government and the citizens can strike a
balanced deal.
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