Tax and Levies (Approved List for Collection) Act
The Tax and Levies Act provides a framework for the collection of taxes and levies by federal, state, and local governments in Nigeria. The Act prescribes the taxes and levies that each tier of government is authorized to collect, including stamp duties, road tax, and various development levies.
Legal area: Law governing the assessment, collection, and administration of taxes.
Year enacted: 2004
Full text: https://lawsofnigeria.placng.org/laws/tax-and-levies-act.html
Key Provisions
- Schedule 1: Taxes and levies collectable by the Federal Government
- Schedule 2: Taxes and levies collectable by State Governments
- Schedule 3: Taxes and levies collectable by Local Governments
- Section 1: Authority to collect taxes and levies
- Section 2: Approval and gazette of taxes and levies
- Section 5: Penalties for unauthorized tax collection
Significance
The Tax and Levies Act is important for the fiscal federalism framework in Nigeria, defining the revenue allocation between the three tiers of government. It helps prevent duplication of taxation and establishes the legal basis for the collection of various sub-national taxes.